Peruvian markets worried about Castillo government’s flirtation with radical left

The market uneasiness continued despite gestures such as that of Economy Minister Francke, who met Monday with the respected president of the Central Bank, Julio Velarde, to coordinate the joint work that will "give tranquility to the market and investors".

RIO DE JANEIRO, BRAZIL - One week after the inauguration of Peru's new president, socialist Pedro Castillo, doubts persist about a possible radical direction his government may take. This has generated concern in the private sector, according to reports from analysts and banking sector sources.

The most recent report by risk analysis firm Eurasia Group explains that "there are no guarantees that Castillo will distance himself from the more radical arm of his party [Peru Libre] and opt for a more moderate policy agenda," not even with the appointment of Pedro Francke as Finance Minister.

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