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LIMA, Aug 7 (Reuters) - The president of Peru's central bank said on Thursday that inflation in August will likely be "substantially" lower than the 0.54 percent rise posted in the same month a year ago.
Central Bank President Julio Velarde, speaking on the sidelines of an event, also reiterated that the annual inflation rate will probably ease into the 1 to 3 percent target range in August.
In July the annual inflation rate was 3.33 percent, remaining above the bank's target ceiling as it has all year.
The central bank will decide late on Thursday whether to hold the benchmark interest rate at 3.75 percent.
Most analysts polled by Reuters said that the bank will likely opt to cut the rate by a quarter percentage point for the second month in a row to counter an economic slowdown. (Reporting by Teresa Cespedes; Editing by James Dalgleish)