Peru’s top economic officials, Central bank President Julio Velarde and Finance Minister Jose Arista, are currently at odds over the state of the country’s weak economy. During a mining event, Velarde took a critical stance towards Arista, suggesting that finance ministers are now too afraid of being fired by Congress to address public spending increases.
Velarde, who has held his position for 18 years, expressed hope that the next president would have a congressional majority, as current President Dina Boluarte has faced challenges due to corruption scandals, protests, and economic troubles. In response to Velarde’s comments, Arista called for the central bank to be more proactive in lowering interest rates to further stimulate economic growth. While the central bank has already reduced rates from 7.75% to 5.75%, Arista believes more action is necessary to help the economy recover at a faster pace.
However, some critics have pointed out Velarde’s optimism regarding economic growth despite data indicating a prolonged recession. Looking ahead, Velarde anticipates that inflation will continue to decline in the coming year while Arista hopes for fewer errors in judgment compared to the previous year. Despite their differences, both Velarde and Arista share a common goal of improving Peru’s weak economy through sound fiscal and monetary policies.
