The President of Peru’s Central Reserve Bank, Julio Velarde, estimates that inflation in Peru is “under control” for the next two years, and that it will oscillate between 2.1% and 2.2%.
Regarding the fiscal deficit, he said it would be politically impossible for the Peruvian Congress to approve another exemption from the Fiscal Prudence and Transparency Law in order to have a fiscal deficit of over 1% from 2012 onwards.
Velarde said that a fiscal deficit of 1.6% is expected for this year and 1.1% in 2011 considering a deficit projection of 1.5% for 2011.
He also told the press that credits have grown by 12.7% in April, compared to the same month last year, and the Central Reserve Bank expects an advance of 20% by the end of 2010.
According to Velarde, credits in Peru have grown more than in Brazil, Colombia, Chile and Mexico.
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