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LIMA, April 9 (Reuters) - Peru’s central bank left the benchmark interest rate unchanged at 3.25 percent on Thursday, as the bank weighed anemic economic growth with fears of stoking inflation.
The market had widely expected a hold after inflation had crept up recently, testing the upper limit of the bank’s tolerance range in March.
The bank lowered the key rate in January, its third reduction since July, as it sought to stimulate Peru’s stuttering mining-fueled economy, which has slowed sharply over the past year on lower global mineral prices and faltering output.
“The most recent indicators on activity and business and consumer sentiment continue pointing to a weaker economic cycle,” the bank said in a statement following its monthly meeting.
But rising inflation and a sol currency that has slid in value against the dollar have since dissuaded the bank from a further loosening of monetary policy. (Writing by Rosalba O‘Brien; Editing by Ken Wills)