AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
Deutsche Bank Predicts Peru's Central Bank to Cut Rates by 50bps by End 2025
ByAinvest
Monday, Jul 14, 2025 11:23 am ET1min read
Deutsche Bank still expects Peru's central bank to cut rates by 50 basis points by the end of 2025, despite last week's rate hold. The bank's forecast is based on its expectation of moderate inflation and strong economic growth in Peru.
Peru's economy is projected to have expanded by nearly 3% in the second quarter of 2025, according to the central bank chief economist Adrian Armas. This growth rate aligns with the central bank's forecast of 3.1% economic expansion by the end of the year [1][2].The Peruvian gross domestic product (GDP) likely grew between 2.4% and 2.6% in May and more than 4% in June. However, July's economic figures were negatively impacted by protests from informal miners who blocked a key copper corridor, reducing growth by approximately 0.2% [1][2][3].
The central bank expects GDP growth to ease to 2.9% in 2026. Despite the recent protests, Peru remains the world's third-largest copper producer and a major exporter of metals and agricultural commodities into the United States.
The U.S. President Donald Trump's announcement of a 50% tariff on copper imports, set to take effect on August 1, could lead to higher prices in the U.S. if the country lacks the capacity to substitute its copper imports. Chile and Mexico, other major copper exporters, are looking to ship their production to new markets [1][3].
Despite the positive economic outlook, Deutsche Bank still expects Peru's central bank to cut rates by 50 basis points by the end of 2025. The bank's forecast is based on its expectation of moderate inflation and strong economic growth in Peru [3].
References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3T80Q4:0-peru-central-bank-sees-economy-growing-nearly-3-in-q2/
[2] https://uk.investing.com/news/economy-news/perus-economy-projected-to-grow-nearly-3-in-q2-2025-93CH-4166307
[3] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3T80Q4:0-peru-central-bank-holds-growth-forecasts-steady-as-trump-readies-copper-tariffs/
Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc’s editorial and disclosure standards.
Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content.
AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.
Comments
No comments yet