Peru Needs Expansive Policies

The general manager of Peru’s central bank said the economy needs expansive monetary and fiscal policies through 2017 to bolster growth that he expects to slow to about 3% year-on-year in the fourth quarter, Reuters reported. Renzo Rossini, who is not part of the bank’s decision-making board but has been its manager since 2003, said that both the central bank and the finance ministry must work to ensure economic growth improves. Peru’s central bank has kept the benchmark interest rate steady at 4.25% for the past eight months as inflation has hovered near the upper limit of its target range and copper output has sustained economic growth amid weak domestic demand.