Tuesday , January 31 2023

The Central Bank President highlighted the IMF report on Chile


President of the Central Bank, Mario Marcel, Pointing to Article IV of the International Monetary Fund (IMF), highlighted the reality in Chile.

"The outcome of the IMF report and the outlook for the Chilean economy are in line with the Bank's vision, reflected in its latest monetary policy report and the RPM protocol in October.", – said Marcel.

"There is a considerable progress in the recovery of the economy, which will cover the shortcomings of its activities, adapt to the potential of long-term growth and increase the inflation rate,, – said the president of the joint venture.

"This will allow the Central Bank to eliminate the propaganda to ensure that inflation is close to political goals. In this sense, the report coincides with recent CB Board's report on the need for gradual and cautious progress in the monetary reform process "said the expert.

Marcel drew attention to this situation "It is important that the Bank's new general banking law is provided as a legal framework that enhances the solvency of the banking system and strengthens macro-privileged policy in Chile".

In addition, the head of the CB noted that the report has four important elements for the Central Bank policy: (a) the basis of monetary policy for medium-term inflation; (b) the role of the exchange rate as a buffer for external shock; (c) low exchange rates and financial stability of the Chilean corporate sector, and (d) high reputation of the monetary policy.

"All of these factors, together with the fundamental macroeconomic foundations, explain the high stability of the Chilean economy to external turbulence. She also spoke about the Central Bank's assessment of recent developments in the monetary policy concept and communication framework., – said Marcel.

"It is important to consider some of the anticipated challenges of off-budget financial legislation outlined by the IMF, including strengthening the bank's decision and deposit insurance regime, supervisors, setting up a single credit registry and supervising conglomerates."

"It is important that the issues that should be addressed after initial steps in the implementation of the LGB have to be substantial during the Financial System Assessment (FSAP) agreed between the authorities and the IMF. By 2020, the ""said Marcel.

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