The Fed cuts its rate by 50 basis points and the market reacted like this:

The United States Federal Reserve (FED) cut its reference rate by 50 basis pointsleaving it in a range of 4.75% and 5%. In this way, the FED’s monetary policy rate is below that of the Central Reserve Bank, which at its board meeting this month left it at 5.25%.

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“This is the first rate cut (by the Fed) since March 2020 (COVID-19 times). For the rest of 2024, the market expects between 2-3 additional cuts, for now,” said Alberto Arispe, general manager of Kallpa Securities SAB.

In the foreign exchange market, the dollar was quoted at a level of S/3.75, below yesterday’s close (S/3.756). Meanwhile, the shares of the Lima stock exchange, measured by the S&P/BVL Peru General, rose 1.65%, while the S&P/BVL Peru Select climbed 1.5%.

Jeremo Powell will hold a press conference with more details at 1:30pm. The next FED meeting will be on November 7 (the second to last meeting of 2024).

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