Julio Velarde: “The society learned that you can’t continue with irresponsible fiscal and monetary policies”

The President of Peru’s Central Reserve Bank (BCR), Julio Velarde, participated in the inaugural address at the 2024 APEC CEO Summit, where he stated that Peru has learned to have a better control inflation and avoid pursuing irresponsible fiscal and monetary policies.

“We suffered greatly from high inflation, and I believe society learned that you can’t continue with irresponsible fiscal and monetary policies”, he said, referring to Peru’s period of hyperinflation during the 1980s.

In this regard, he mentioned that during the recent inflationary period, the BCR raised the benchmark interest rate to control inflation and, after reaching the target range, subsequently lowered it to 5%.

Additionally, Velarde highlighted that the economic chapter of Peru’s Political Constitution protects the rights to investment and property, with no discrimination between domestic and foreign companies. He also noted that every citizen and company is guaranteed the right to hold their money in the country or in any currency.

Economic growth

During the inaugural address, the head of the BCR remarked that “in recent years, the lack of reforms in the region has impacted the economic growth of various APEC countries”.

He went on to state that in the 1980s, numerous countries faced fiscal challenges, which were later addressed to bring these issues under control.

At another point in the event, Velarde noted that, in the current century, growth within the APEC region has been slightly below 4%, while Peru’s growth rate has exceeded this figure.