July 13, 2017 / 11:20 PM / a year ago

UPDATE 1-Peru central bank cuts key rate for second time in 3 months

(Adds context, bank comment)

LIMA, July 13 (Reuters) - Peru’s central bank lowered its benchmark interest rate by 25 basis points to 3.75 percent as widely expected on Thursday, its second rate cut in three months as the economy slows and inflation retreats.

The bank said in a statement that it would remain attentive to inflation and other factors when considering further changes to monetary policy.

All 14 analysts polled by Reuters had forecast the bank’s decision, which follows three straight months of falling consumer prices. The central bank’s rate cut in May was the first since January of 2015.

In June, the annual inflation rate eased to 2.73 percent, within the central bank’s 1-3 percent target range for the first time since August 2016.

Economic growth in Peru has slowed sharply this year in the wake of a massive graft scandal and severe flooding.

Reporting by Lima Newsroom; Editing by Sandra Maler and Diane Craft

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