LIMA, Sept 1 The president of Peru's central
bank said on Monday that a surprise inflationary slowdown in
August had carved out extra space for more expansive monetary
policies, a local newspaper reported.
"Obviously it gives a greater margin for monetary policy,"
Central Bank President Julio Velarde was quoted as saying on the
website of financial newspaper Gestion. "This without a doubt
must be studied."
Peru's inflation index fell unexpectedly by 0.09 percent in
Last month, the central bank surprised the market by opting
not to cut the benchmark interest rate to counter the worst
economic slowdown since 2009.
Velarde spoke on the sidelines of an event in Madrid,
Officials at the central bank said they could not
immediately confirm the accuracy of his quoted comments.
(Reporting by Mitra Taj; Editing by Peter Cooney)