By Marco Aquino
Peruvian central bank chief Julio Velarde said on Monday that he will remain in the role at the request of President-elect Keiko Fujimori, signaling continuity in the macroeconomic policies that have helped keep inflation in check in the Andean nation.
Velarde has led Peru's central bank for two decades, winning praise for his stable management during political turmoil including a quick succession of presidents, and helping keep Peru's inflation rate among the lowest in Latin America.
The head of Peru's central bank serves a five-year term, the same length as a presidential term, and can be replaced or reappointed by the incoming president.
Fujimori, daughter of late former President Alberto Fujimori and a four-time presidential candidate, is due to take office on July 28.
Following Velarde's announcement, Fujimori said she was not expecting such a quick response, which she called "great news" for Peru.
"The figures on the management of inflation and monetary stability are very successful and that is due to the work of a great man who is sitting here next to me," she added.
Velarde, 73, had recently told reporters that if he were asked to stay on, he "would have to think about it."
Consumer prices in Peru, the world's third-largest copper producer, rose 1.5% last year, within the central bank's target range of 1% to 3%.
Velarde recently said inflation this year would exceed the target, at 3.8%, driven mainly by external factors such as higher international oil prices and the effects of the El Niño weather phenomenon, which is already hitting sectors including fishing and agriculture.
For 2027, the central bank expects inflation to ease to 2.0%.
In June, Velarde said the bank had raised this year's economic growth forecast to 3.4% from 3.2%, citing strong domestic demand and investment.