(Adds details from statement, quotes)
March 24 (Reuters) - The International Monetary Fund
(IMF) on Friday commended Peruvian authorities for decisively
addressing high inflation and advised continuing to implement
monetary policy in a flexible and well-communicated manner.
Peruvian inflation is expected to slow to the Peruvian
central bank's target range by end of 2023 or in early 2024, the
IMF said in a statement, adding that it supported policy makers'
resolve to stand ready to take further measures, if needed, to
bring inflation to target.
"A deeper and more developed forward foreign exchange
market, combined with further reductions in financial
dollarization, would limit the need for frequent interventions,
allowing the exchange rate to play a larger role as a shock
absorber," the IMF said.
It added that Peru's fiscal policy stance is
"appropriate," with a temporary, targeted, small fiscal impulse
supporting a "weaker economy in the short term while avoiding
adding to inflationary pressures."
Peru's strong policy frameworks and macroeconomic
buffers, complemented by a two-year flexible credit line
arrangement for about $5.5 billion, will help shield the economy
from downside risks, the IMF said.
(Reporting by Carolina Pulice; Editing by Anthony Esposito)
