“MSCI warned earlier in mid-August that Peru could be downgraded to frontier market status as only three securities from the country had met the size and liquidity requirements for emerging market status,” according to Emerging Equity.
“We expect inflation to start easing in the second quarter, but we acknowledge that the risk is that it remains higher than we expect. The apparent rise in inflation expectations is a concern and the depreciation of the Peruvian sol, which has fallen by a further 3% against the dollar since the beginning of the year, will add to already high price pressures in the economy. What’s more, the economic recovery appears to be gathering steam. Accordingly, while we had previously expected just one more 25 basis point hike in rates this year, we now expect 75 basis point of hikes, taking the policy rate to 5%,” according to a Capital Economics posted by Barron’s.
iShares MSCI All Peru Capped ETF
