The Board of Directors of the
agreed to keep the reference rate steady at 4.50%.
Future reference rate adjustments will be conditional on new information about inflation and its determinants.
The decision to maintain the reference rate considered the following information and projections:
i. In June, the monthly headline inflation rate was 0.13%, while the core inflation was 0.07%. The year-on-year inflation remained at 1.7% in June, and the core inflation declined from 1.8% in May to 1.7% in June.
ii. Inflation expectations have increased in several major economies, particularly in the United States of America, influenced by trade tensions. In this context, the projected convergence of inflation toward its target may be slower than expected.
iii. One-year-ahead inflation expectations remained at 2.3% in June, within the inflation target range.
iv. Year-on-year inflation is expected to remain in the coming months within the lower band of the target range to then settle around the center of that range. Likewise, core inflation is expected to remain around 2% in the projection horizon.
v. In June, most current situation and economic activity expectations indicators deteriorated relative to the previous month. However, almost all remained in the optimistic territory, in a context where economic activity is around its potential level.
vi. The outlook for global economic activity has deteriorated due the restrictive measures on international trade, with a downward bias given the high uncertainty about its effects on the global economy. In this context, financial market volatility is still prevailing.
The Board is particularly attentive to new information on inflation and its determinants, including the evolution of core inflation, inflation expectations, and economic activity, to consider, if necessary, changes in the monetary stance.
It reaffirms its commitment to adopt the necessary actions to maintain inflation within the target range.
The Board also decided on the following interest rates on its window facility operations in domestic currency with financial entities:
i. Overnight deposits: 2.50% per year.
ii. Direct security/currency repo and rediscount operations: i) 5.00% per year for the first 10 operations in the last 3 months and ii) the interest rate set by the Monetary and Exchange Operations Committee for operations in addition to these 10 operations in the last 3 months.
Moreover, the Monetary and Exchange Operations Committee may establish higher rates based on the amount of the operations.
The BCR Board's next monetary policy session will take place on August 14, 2025.