The Central Reserve Bank (BCR) stated on Monday that having solid public finances allows for lower interest rates. Therefore, it is important for Peru to maintain the fiscal consolidation that took so much effort to achieve.

“Peru has already had decades of solid public finances, which make our country’s interest rates among the lowest in Latin America. This also explains the investment-grade rating of the Peruvian economy,” BCR’s Economic Studies Central Manager Adrian Armas stated.

“In its macroeconomic publications, the Central Reserve Bank has reiterated the importance of fiscal consolidation to maintain solid public finances, which is a State policy spanning several decades and was not easy to achieve at the time,” he added.

The BCR official noted that having solid public finances makes it easier for the Peruvian State to obtain credit at very low interest rates, which in turn extends to the entire private sector.

“Solid public finances not only explain why the Peruvian State enjoys low interest rates when it issues public debt but also extend to the entire private sector, enabling access to low interest rates due to this fiscal discipline,” Armas said.

“Hence the Central Reserve Bank’s call, in its publications, for fiscal consolidation to continue; however, this requires very prudent management of public spending,” he added.

The BCR official emphasized that keeping public spending under control is essential to ensuring macroeconomic stability.

“It is important to maintain controlled public spending in order to preserve macroeconomic stability in Peru and keep country risk low. This is something that has taken great effort to achieve over decades and must be preserved,” he concluded.

(END) CNA/MVB

Publicado: 17/12/2025