Julio Velarde warns of strong impact of El Niño in Peru

The president of the Central Reserve Bank of Peru foresees pressure on economic activity, food prices, and inflation, although he estimates an improvement starting from March or April 2027. The president of the Central Reserve Bank, Julio Velarde, warned that the El Niño phenomenon constitutes a critical risk for the Peruvian economy and anticipated a significant impact on economic activity, food prices, and inflation. During his presentation before the Bicameral Budget Commission of Congress, within the framework of the discussion of the macroeconomic assumptions that support the Public Budget 2027, Velarde pointed out that the most likely scenario is that the phenomenon will hit the Peruvian economy hard. The head of the BCR maintained that current conditions point to a phenomenon of extraordinary magnitude globally and compared it with the historical records of 1987. Velarde explained that one of the main channels of impact will be related to agricultural production. Among the ...