LIMA, Feb 26 (Reuters) - Peru’s central bank said on Thursday that it was lowering local currency bank reserve requirements to 8 percent from 8.5 percent in March, part of its ongoing bid to boost lending in soles as the economy slows.
The central bank has gradually lowered the reserve floor for deposits in soles from 30 percent in mid-2013.
Central Bank President Julio Velarde told Reuters February 2 that the monetary authority was nearing its limit for loosening local currency reserve rules but that there could be “a few more cuts.”
Velarde has said that he preferred loosening reserve rules to lowering the benchmark interest rate as a way of stimulating economic activity.
Peru’s economy expanded by 2.35 percent in 2014, the weakest rate since 2009 and well under 2013’s 5.8 percent expansion.
The sol has slipped 3.79 percent against the dollar so far this year. (Reporting By Mitra Taj; Editing by Chizu Nomiyama)