BCR targets private savings to stimulate economic revitalization | Economy

The president of the Central Reserve Bank of Peru (BCR), Julio Villardi, said Peru has one of the highest savings rates of 26% in the world, and the idea is how to tap into the savings made in previous months. Consumption to revitalize the economy.

“Many people who kept their jobs did not spend, and Saving in the case of Peru increased at rates of 20%.. Significant increase in investment fund. What is interesting is how this surplus is spent. There are people who have preserved this surplus, How to make spending turn into an engine of the economy?The CADE executive said.

As he has said since then BCR is looking for ways to lower the interest rate on mortgage loans, “We are looking partly for these accumulated savings and partly for AFP withdrawals to boost the economy”, He expressed.

Julio Velarde compared the savings figures in Peru with those obtained in France and the United Kingdom, which have similar conditions to the levels of savings generated during the pandemic.

He pointed out that it is “the largest private savings in the past thirty years, since the 1990s, and we must direct it to consumption.”

No change in interest rate

On the other hand, Giulio Villardo commented on the stability of interest rates in monetary policy, at least until the second half of 2022, due to the low levels of inflation expected for this year, and in 2022.

“At the beginning of the epidemic, we lowered the interest rate in monetary policy, being the lowest in the region, and Poland only exceeded it by 0.10%,” he said.

Through this, he confirms that the stimulus has been given to the economy, and therefore he considers that we can afford this economic stimulus and next year.

On the other hand, he stressed that the economic recovery will be among the fastest in the region.