Peru cenbank cuts deposit rules for 3rd straight month

Reuters

LIMA, Sept 29 (Reuters) - Peru's central bank will loosenreserve requirements in October for the third straight month, aspart of its effort to inject liquidity into the South Americancountry's economy, the bank said in a statement on Sunday.

The bank said it is seeking the orderly growth of credit inthe local sol currency as foreign borrowing costs rise.

"The measure will permit 1 billion soles ($360 million) ofliquidity to enter the national financial system," the statementsaid.

Last year Peru's economy expanded 6.3 percent, one of thefastest rates in the region. This year growth has slowed morethan expected because of weaker mineral exports and slightlytamer domestic demand.

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