Sunday , January 23 2022

Central Bank President stressed IMF report on Chile


President of the Central Bank (BC), Mario MarcelInternational Monetary Fund (IMF) IV.

"The results of the IMF Report on the current situation and its perspective on the Chilean economy are in line with the Bank's vision reflected in its latest Monetary Policy Report and October RPM."Marcel said.

”The economy has significantly increased growth deficits, which will adjust the long-term growth potential and increase the inflation rate, as it will close operational gaps“, BC the president said.

Tır This will enable the Central Bank to withdraw the monetary stimulus to ensure that inflation converges to the policy objective. In this sense, The report overlaps with recent communications on the need for progressive and cautious progress in the monetary normalization process of the BC said.

Marcel drew attention to this "It is noteworthy that the report assigns the importance to the new General Banking Act as a legal framework to strengthen the solvency of the banking system and strengthen macro-federal policies in Chile."

Similarly, the BC leader said, dan It is also worth noting that the report is composed of four key elements for the Central Bank's policy: (a) the monetary policy framework for medium-term inflation targets; (b) the role of the exchange rate as a buffer for external shocks; (c) low exchange rate risk and the financial strength of the Chilean corporate sector; and (d) high credibility of the monetary policy.

"All these factors, together with sound macroeconomic fundamentals, explain the high resistance of the Chilean economy to external turbulence, as stated in the report. He also underlined the Central Bank's assessment of the recent developments in the monetary policy formulation and communication framework.Marcel said.

. Beyond the LGB, which is mentioned by the IMF, it is important to consider some of the pending challenges of the financial legislation, including strengthening the bank solution and deposit guarantee regime, supervisors among them, the development of a unified credit register and the control of conglomerates,. Said the BC president.

Ular These are issues that need to be addressed after the initial steps in the implementation of the LGB, and that should be significantly improved in the time of the Financial System Assessment (FSAP) agreed between the authorities and the IMF. 2020 for "said Marcel.

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