Peru: Enduring Political Polarization

Peru heads to a presidential runoff on June 7 between Keiko Fujimori and Roberto Sánchez amidst high political polarization. Despite the political uncertainty, the restoration of a bicameral legislature provides institutional safeguards that are currently keeping country risk premiums near historical lows.

Key Takeaways

• 1.Keiko Fujimori and Roberto Sánchez will face off in a presidential runoff on 7 June after a polarized first round.
• 2.The restoration of a bicameral congress with a new Senate provides an institutional safeguard against radical policy changes.
• 3.Market risk pricing is currently low, reflecting expectations of either a Fujimori victory or a constrained Sánchez presidency.

Table of Contents

• The runoff is scheduled for 7 June
• The return of the Senate
• What to watch
• The next few months and investment implications
• Global asset class preferences definitions
• Appendix
• Risk information

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