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ABSTRACT

The monetary policy approach consists of an explicit and public commitment to

maintain monetary stability through the use of inflation targets. This approach was
first implemented in New Zealand in 1990 and then extended to 26 countries.

The main tool of monetary policy is the interbank interest rate (TIRI),

defined as the interest rate that commercial banks charge each other for short-term
loans

Monetary policy is a part of the economic policy that is the responsibility of

the Central Reserve Bank of Peru (BCRP), which is the autonomous and
independent entity of the central government. There are various forms and

objectives of monetary policy in Peru is aimed at stability Monetary policy defined
as the achievement of the inflation target established by the BCRP, which is 2% with

a margin of error of 1%, which is between 1 and 3%.

The BCRP is in charge of annually announcing all the information to clarify

the expectations of the people, Peru adopted this subject in the year 2002.

Monetary policy uses a variety of tools to control and influence outcomes
such as economic growth, inflation in the country, exchange rates with other

currencies and also unemployment.

The three most important examples are open market operations consisting

of buying or selling government bonds, changing reserve requirements (reserve

requirements) and setting the discount rate.

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