UPDATE 2-Peru's finance minister could step down

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By Terry Wade

LIMA, July 1 (Reuters) - Peru's Finance Minister Luis Carranza has expressed his desire to resign, and it is up to him to decide whether he stays or quits, President Alan Garcia told reporters on Tuesday.

Garcia, who praised Carranza's work, said a final decision had not yet been made.

"In the end, I'll put it in his hands to decide ... It's not something that the prime minister or I have asked for," Garcia said.

Three cabinet aides said Carranza has talked of leaving after nearly two years in office, apparently to return to the private sector.

Peruvian ministers typically submit their resignations twice a year to give the president a chance to reshuffle his Cabinet.

Carranza, who won widespread kudos from investors, has overseen surging annual growth of 9 percent, liberalized trade rules, and helped keep inflation at around 4 percent a year.

He is considered the architect of Peru's recent economic success and won support from Garcia at a time when mainstream economics are under attack in much of Latin America for allegedly hurting the poor.