affirmed that the monetary authority has been lowering its interest rates in a prudent manner.
The economist indicated that annualized inflation has been decreasing; yet it is still above the target range.
"Since mid-2021, inflation has stood above the target range and reached levels not observed in many years, even reaching peaks of 8.8% as in June last year," Armas recalled.
The official explained that, in this context, the monetary policy interest rate seeks to return inflation to the target range.
Armas added that an inflationary index has been observed declining in recent months.
"Indeed, inflation has been going down; moving forward, this trend may continue, according to projections," he underlined.
Risks
"So, the monetary policy will continue to reduce its interest rate, in accordance with new information about the macroeconomy, about inflation and its determinants," he emphasized.
Inflation
Regarding inflation, Armas underscored that the inflation rate and underlying inflation have been decreasing since the beginning of 2023 due to the reduction of some transitory factors caused by restrictions on the supply of hundreds of foods.
"A decreasing trend is projected that would allow inflation to be placed within the target range at the beginning of 2024," he noted.
Publicado: 11/11/2023