Peru’s central bank left its benchmark interest rate unchanged at 4.50% for a third straight month, saying below-target inflation gives it room to assess the impact of domestic election uncertainty and the United States’ 145% tariff on Chinese goods on the local economy. Consumer-price growth slowed to 1.7% in July, near the midpoint of the bank’s 1%–3% goal, while economists surveyed by Bloomberg largely expected the pause. Governor Julio Velarde noted that Peru’s borrowing costs are now the lowest among major Latin American economies and on par with the U.S. federal funds rate, affording policymakers flexibility. The board reiterated that further moves will depend on new data, including June activity figures due Friday; analysts project annual growth of about 4.8%. Elsewhere in the region, Brazil’s central bank signalled that its own contractionary stance will remain in place "for a very long" period. Economic policy director Diogo Guillen said services inflation, fueled by a tight labor market, is still inconsistent with the 3% target, underscoring the need for restrictive rates despite recent downside surprises in headline price readings.