UPDATE 1-The head of the central bank of Peru, Velarde, will stay for another term


(Add political context)

By Marcelo Rochabrun

LIMA, Oct.5 (Reuters) – Peru’s central bank chief Julio Velarde will remain in his post for another five-year term, the government of the copper-producing nation of South America said in a tweet on Tuesday.

His continued stance in monetary policy could help reassure markets shaken by the June election of President Pedro Castillo, who belongs to a Marxist-Leninist party.

The tweet comes from the Prime Minister’s office. The decision to keep Velarde in his post will only be official once signed by the Castillo.

Velarde has run the bank for over a decade and has been recognized for helping run one of the region’s most stable economies. In the role since 2006, he had recently signaled his willingness to stay on for another term.

Castillo, who began his campaign as a wild card candidate, won the June 6 election by a narrow margin against right-wing rival Keiko Fujimori.

Castillo’s rise was prompted by disillusionment with traditional politics and increasing poverty in the country of some 33 million people. The economy has made significant progress in recent years but has been hammered by the coronavirus epidemic. (Report by Marcelo Rochabrun, written by Hugh Bronstein Editing by Alistair Bell)


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