LIMA, Sept 12 (Reuters) - Peru's central bank said on Friday that the economic recovery in July and August was likely less robust than previously expected as key indicators point to ebbing consumption.
The central bank's chief economist, Adrian Armas, did not specify how quickly the bank expected the economy to have expanded those months.
Data for July will be released on Monday. A rebound from the weakest growth rates in five years is widely seen as having started in July, following June's 0.3 percent year-on-year expansion.
But Armas said signs of a weaker-than-expected recovery led the central bank to cut the benchmark interest rate on Thursday.
"Economic activity in July and August is at a slower pace than expected, better than in June but not as fast a recovery as was forecast," Armas told reporters in a conference call.
"That's why we reduced the benchmark interest rate." Armas said preliminary data shows the rise in electrical use slowing in July and August, and that imports, cement purchases and sales taxes all fell from the same period in 2013.
Last month, the central bank said the economy would likely grow by 3.4 percent in all of the third quarter from the same period in 2013. A Reuters poll earlier this week showed that analysts expect that the economy in July grew by about 2 percent on the year.
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The central bank's chief economist, Adrian Armas, did not specify how quickly the bank expected the economy to have expanded those months.
Data for July will be released on Monday. A rebound from the weakest growth rates in five years is widely seen as having started in July, following June's 0.3 percent year-on-year expansion.
But Armas said signs of a weaker-than-expected recovery led the central bank to cut the benchmark interest rate on Thursday.
"Economic activity in July and August is at a slower pace than expected, better than in June but not as fast a recovery as was forecast," Armas told reporters in a conference call.
"That's why we reduced the benchmark interest rate." Armas said preliminary data shows the rise in electrical use slowing in July and August, and that imports, cement purchases and sales taxes all fell from the same period in 2013.
Last month, the central bank said the economy would likely grow by 3.4 percent in all of the third quarter from the same period in 2013. A Reuters poll earlier this week showed that analysts expect that the economy in July grew by about 2 percent on the year.
yahoo.com
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