* Peru cuts benchmark interest rate to all-time low
* Cenbank says indicators will guide future rate decisions
(Adds analyst comment)
LIMA, July 9 Peru's central bank slashed its
benchmark interest rate to an all-time low of 2.0 percent on
Thursday, from 3.0 percent, in its sixth straight cut this year
to boost growth in the midst of a global downturn.
Thursday's cut was the bank's fourth consecutive 1-point
reduction and came after consumer prices fell 0.34 percent last
Relatively low inflation this year has given the bank room
to trim the rate, which is now at its lowest level on record.
"With this new cut, the interest rate has hit an all-time
low, which represents a significant monetary stimulus. Future
adjustments will depend on the evolution of major economic
indicators," the bank said in a statement.
The bank's annual inflation target is 2 percent, plus or
minus one percentage point.
Six of the nine economists polled by Reuters had said the
bank would likely cut the rate to 2.0 percent, while three
forecast it would fall to 2.5 percent.
"A cut of 100 basis points, which was expected, in some way
suggests there may be more reductions ... because indicators of
economic activity do not show a recovery and inflation is low,"
said Juan Carlos Odar, an analyst at Peru's largest bank, Banco
de Credito (CRE.LM).
Peru's economy, which posted blistering 10 percent growth
last year, is expected to ease to 3 percent growth in 2009 as
prices for most metal exports have sunk and domestic demand has
(Reporting by Marco Aquino; Writing by Dana Ford; Editing by