(Adds context on inflation, comment from central bank)
LIMA Oct 13 Peru's central bank held the
benchmark interest rate steady at 4.25 percent for the eighth
month in a row on Thursday, as expected, after inflation rose
slightly above the upper limit of the bank's target range.
All nine economists surveyed by Reuters had forecast the
rate hold, which followed a slight increase in the annual
inflation rate to 3.13 percent last month - above
the central bank's 1-3 percent target range.
The central bank reiterated in a statement that it expects
inflation to cool to 2.8 percent by the end of the year before
easing to its goal of 2 percent in 2017.
Private analysts polled by the central bank in September
raised their view for 2016 inflation to 3.0 percent from 2.8
percent, but left their outlook for 2017 unchanged at 2.6
(Reporting By Mitra Taj; Editing by Sandra Maler and Andrew