LIMA: Peru's central bank said on Sunday that it would lower local currency bank reserve requirements to 7.5 percent from 8.0 percent from April, as part of its ongoing bid to boost lending in soles to counteract a slowing economy.
The central bank, which has said that it prefers loosening reserve rules to lowering the benchmark interest rate as a way of stimulating economic activity, has gradually lowered the reserve floor for deposits in soles since mid-2013.
Central Bank President Julio Velarde told Reuters last month that the monetary authority was nearing its limit for loosening local currency reserve rules but that there could be "a few more cuts."
Peru's economy expanded by 2.35 percent in 2014, the weakest rate since 2009 and well under 2013's 5.8 percent expansion. It is expected to grow around 4.2 percent this year.
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