PERU Central Bank keeps benchmark interest rate at 2.25%

(ANDINA) The Board of Directors of the Central Reserve Bank of Peru (BCR) decided to maintain the reference at 2.25% expecting year-on-year inflation to be around 2% over the forecast horizon, with a moderate downside bias due to the possibility of a lower-than-expected increase in domestic demand.

►Peruvian Blueberry exports break record in Nov 2019

Likewise, the financial entity indicated that inflation was 0.21% in December. Consequently, year-on-year inflation remained at 1.9% in December 2019, while monthly inflation excluding food and energy stood at 0.34% in December, so the year-on-year figure also remained at 2.3%. 

On the other hand, BCR pointed out that the one-year ahead expected inflation remained at 2.2% last December.

► Peru's 2019 inflation within  target range

According to the issuing entity, the weak performance of primary industries and General Government investment in 2019 was attenuated by the activity in non-primary industries.

"Business condition expectations as of December remained stable with respect to November, while economic activity indicators point to a gradual closure of the output gap," Peru's Central Reserve Bank stressed.

► PERU Non Traditional exports up 7.6% in Nov 2019 

Furthermore, it underlined that global growth risks from trade tensions have attenuated, although the impact of the recent geopolitical events on international energy prices is still uncertain.

The BCR Board affirmed that it pays close attention to new information on inflation and its determinants in assessing future changes in the monetary policy stance.

At the same session, the Board also decided to maintain the interest rates on BCR off-auction credit and deposit operations in domestic currency with financial entities.

► PERU Country risk at 107 basis points

It arranged: overnight deposits of 1% per year, as well as direct security/currency repo and rediscount operations: i) 2.80% per year for financial entities' first 10 operations over the last 12 months; and ii) the rate fixed by the BCR Monetary and Foreign Exchange Operations Committee for operations other than financial entities' first 10 operations over the last 12 months. It also decided that Dollar swaps should have a fee equal to a minimum annual effective cost of 2.80%.

► Peru exports to Canada total US$2.321 billion in Jan-Nov 2019, 153%

Finally, the BCR Board's next monetary policy session will take place on February 13, 2020.

► Peruvian Blueberry exports break record in Nov 2019

(Andina) Peruvian fresh blueberry exports broke records in November 2019, becoming the product with the second-largest shipments by totaling US$733 million and expanding 64% over the same period in 2018, the Association of Peruvian Farming Producers (AGAP) reported on Friday.

► Peru's 2019 inflation within  target range

This place was previously occupied by grapes.

AGAP affirmed that Peruvian Hass avocados still led the list with shipments worth US$743 million (+2.8%), not to mention the outstanding performance of grapes (US$599 million; +28%), and citrus fruits (US$205 million; +3%).

► PERU Non Traditional exports up 7.6% in Nov 2019

As for mango and organic banana exports, both products posted a slight decrease with shipments of US$201 million and US$140 million, respectively.

Peru's fresh fruit subsector grew 17.3%, thus reaching US$2.739 billion, while the vegetable subsector registered an increase of 12.57%, amounting to US$475 million.

► PERU Country risk at 107 basis points

Within this framework, asparagus stood out (US$349 million; +8%), followed by onions (US$76 million; +30%), peas (US$30 million; +28%), and garlic (US$14 million; +41%).

The main destination markets —for both subsectors— were North America (US$1.384 billion), Europe (US$1.298 billion), and Asia (US$339 million).

Likewise, coffee shipments amounted to US$548 million (-9%) and those of cocoa reached US$269 million (+12%).

► Peru exports to Canada total US$2.321 billion in Jan-Nov 2019, 153%

As at November 2019, the agriculture sector grew 7% totaling US$6.130 billion, and remained the country's second-most important exporting sector.

► PERU Non-traditional exports up 7.6% in Nov 2019

(Andina) Peru's non-traditional exports reached US$1.224 billion in November 2019, a 7.6% expansion over the same period in 2018, the Central Reserve Bank (BCR) has reported.

► Peru exports to Canada total US$2.321 billion in Jan-Nov 2019, up 153%

"This growth was explained by higher shipped volumes (6.6%) —mainly of farming, fishery, and iron-steel products— and due to increased average prices," the entity underlined.

Thus, non-traditional product sales abroad totaled US$12.403 billion between January and November 2019, which represented a growth of 3.5% compared to the similar period in 2018.

► Peru country risk at 107 basis points

Likewise, the issuing entity pointed out that —in the first eleven months of 2019— the increased sales of avocados (+2.6%), blueberries (+53.6%), grapes (+10.1%), frozen giant squid (+54.1%), and asparagus (+3%), among other products, were registered.

Peru's non-traditional exports value registered a rise of 4.4% in the last 12-month period that ended in November 2019. Compared with other Latin American countries, it meant the highest growth among the main countries in the region.

► Mining investment to continue increasing in 2020 

► Peru added-value exports to Canada grew 12.2% in August 2018

Peru added-value exports to Canada amounted to nearly US$116 million between January and August this year, up 12.2% from the same period in 2017, Peruvian Exporters Association (Adex) informed.

Agro-industrial products (US$65.586 billion) accounted for 58% of the total, followed by those of garment (16%), fishery (12%), and iron-steel (4%) sectors. 

Tangerines, quinoa, mangoes, cotton t-shirts, frozen trout fillets, shrimp tails, and blueberries stood out among the most demanded goods by the North American country.

Diversification

Nevertheless, the agro-industrial industry constitutes only 58% of Peru's added-value shipments. Therefore, Adex stressed the need to keep on working to diversify the Inca nation's exportable supply.

To that end, Adex is implementing the TFO Canada 'Ready-to-Export' project aimed at strengthening the textile-garment chain.

According to Adex Project and International Cooperation Manager, Luis Barreto, the initiative seeks to promote trade with Canada by getting textile-garment small and medium scale enterprises involved.