"Inflation registered in recent years is now under control. We have indeed managed to reach the inflation target faster than other countries," he indicated during the 'From Macroeconomic Stability to Sustained Growth Session' held as part of the 62nd edition of CADE Executives in the southern city of Arequipa.
According to Velarde, this is due to two essential factors.
The first is a prudent approach to price increases, and the second is the level of credibility that the monetary entity has, which also prevented an increase in the reference interest rate aimed at controlling inflation.
Regarding economic growth, investment, and job creation, Velarde stated that the growth potential for this and the following years is 3% annually.
"If the necessary reforms are made, growth could reach 5% or slightly more. Among these reforms are the necessary conditions for a country, related to education, the Judiciary, taxes, public investment quality, civil service, and others," he mentioned.
The BCR head recalled that, until 2014, the countries that grew the most in the region were Peru, the Dominican Republic, and Panama; of those three, Peru began to grow much more slowly.
"The factors that explain this include political instability, which undermines the confidence of investors and citizens, the creation of more and new requirements for investments and economic activities, among others —something that we must change," he specified.