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Why is Peru raising its benchmark interest rate?

The fresh data also follows aggressive monetary tightening, as Peru's central bank has raised its benchmark interest rate periodically since the second half of 2021 to combat inflation that surged well ahead of its 1%-to-3% target range.

What's happening in Peru?

Peru, the world's No. 2 copper producer, has been embroiled in political turmoil since December, with anti-government protests blocking roads and clashes with security forces leading to the deaths of dozens of people.

How difficult is it to reach an agreement in Peru?

But Peru's Congress is deeply fragmented and reaching an agreement is tricky. The first proposal, which came from the right-wing Popular Force party, was rejected by 68 lawmakers, and voted in favor of by 54, with two abstentions.

Will Peru move elections forward to December 2023?

Peru’s Congress has rejected a proposal on Wednesday to move elections forward to December 2023, despite nearly two months of protests that have left dozens dead following the ousting of former President Pedro Castillo. Lawmakers will continue debating a different proposal to hold early elections, a key demand of the protesters.

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