April 12 (Reuters) - A controversial measure in Peru to allow savers to once again tap their savings accounts is unlikely to fuel inflation, a senior central bank official said on Friday.
Carlos Montoro, the bank's monetary policy manager, argued that the withdrawals are more likely to go toward savings or paying off debts, rather than consumption.
On Thursday, lawmakers overwhelmingly approved a fresh round of withdrawals from pension accounts, which the country's financial regulator estimated could force fund administrators to sell some $7 billion in assets.
"The majority of the population that would withdraw such funds are those with higher incomes, so it is estimated that a very small part will go to consumption," Montoro said in a monetary policy presentation.
"Most of these resources are likely to go mainly to savings or to the payment of debts, which is not likely to have a great impact on inflation," he added.
Before Congress approved the latest pension withdrawal allowance, Economy Minister Jose Arista warned it could pressure the South American nation's inflation rate.
Since 2020, lawmakers have approved six previous pension fund withdrawals worth some $24 billion in a bid to provide a boost to cash-strapped savers at a time of sluggish economic growth in Peru, once one of South America's star performers. (Reporting by Juana Casas; Writing by Brendan O'Boyle; Editing by Chris Reese and David Alire Garcia)
