Peru had a long period in which monetary instruments were direct and ineffective, followed by a sustained stabilisation and liberalisation from 1993 which eventually laid the basis for the adoption of inflation targeting from 2002.
| Years | Targets and attainment | Classification |
| 1974-92 | exchange rates (dual or multiple in most years) adjusted frequently and in varying ways with eye to balance of payments and/or inflation; monetary policy instruments mainly direct; fiscal dominance endemic; new currencies 1985, 1991; special status of state-owned Banco de la Nacion relative to central bank complicates monetary control; several failed attempts at stabilisation and at financial liberalisation; varying rates of dollarisation | unstructured discretion UD |
| 1993-2001 | sustained stabilisation and liberalisation from early 1990s: central bank gets some autonomy, role of Banco de la Nacion reduced, exchange rate floating (since late 1990), fiscal deficits controlled; liberalisation and deepening of financial markets; focus of policy on inflation reduction via control of base money; among monetary instruments emphasis shifts from reserve requirements to interest rates, but some continued use of macroprudential tools, capital flow measures and forex intervention; high continuing dollarisation | loosely structured discretion LSD |
| 2002-23 | inflation targets; overshoot 2008 and 2022, smaller deviations 2011 and 2015, but medium-term inflation expectations remain anchored except for brief period around 2008; further use of macroprudential policies, occasional but gradually diminishing forex intervention; gradual de-dollarisation; major impact from Covid-19 despite strong fiscal and monetary response; larger inflation target overshoot from late 2021 to late 2023, inflation expectations for 2022 and 2023 rise above but those for 2024 remain within target range; 2023 El Niño weather phenomena | full inflation targeting FIT |
Selected IMF references: SR 1974 pp13-14; RED 1979 pp35-7; RED 1982 pp27-31, 37-9; RED 1984 pp30-31, 56; SR 1987 pp2-3; RED 1990 pp1-2, 33-9, 58; RED 1995 chI; SR 1997 AppV; SI 2001 chIV; SR 2002 p10; SR 2009 p11; SR 2012 p7; SR 2015 p5; SR 2016 pp7-8; SR 2017 p13; SR 2018 pp11-12; SI 2019 pp17-21, 29, 41-5, 52-5; SR 2019 pp5, 12-14; SR 2021 pp4-9, 14-16; SR 2022 pp5, 13; SR 2023 pp7-9, 12-13; SER 2024 pp8, 11, 44.
Additional sources: Pastor (2012); Banco Central de Reserva del Perú website for inflation and inflation expectations data.
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Monetary Policy Frameworks 