Peru reduces interest rate to ease COVID-19 impact

Peru’s central bank decided to reduce 1.25% interest rate on Thursday from the initial 2.25%. Such scheme was aimed at relieving Peru’s economy from the drag brought by the novel coronavirus contagion.

The said reduction immediately followed after reports disclosed the very first death from the coronavirus. Statistics continued to bloat with additional 89 cases making a total of 234 diagnoses in the world’s No. 2 provider of copper.

“Economic activity in the country is being temporarily affected by the effects of the coronavirus pandemic, through a supply shock and the reduction of internal demand,” Peru’s Central bank said

The bank is also equipped with additional liquidity injection instruments to minimize the pressing impact of the contagion. “The risks around global and local economic activity have increased in recent days, including the possibility of a global economic recession in the first half of the year,” it added.