BCB Director Guillen says the fact that interest rates are still at their maximum globally shows that you need confidence to provide inflection in monetary policy; see a deceleration in economic activity, but resilience mostly in the labour market

• 2023 GDP shows surprise mostly in agriculture.


• The economy is decelerating but there's resilience.


• Credit performance is within what was expected given the mon pol cycle.


• Do not see anything dysfunctional in financial conditions.


• The most important thing we have been emphasizing is that there is no mechanical relationship between new fiscal rules and monetary policy.


• Negative fiscal risks have fallen, but primary result expectations have not changed much.


• 2023 inflation expectations have fallen at the margin, but 2024 inflation expectations are above the target.


• Any change in the inflation target framework should not be correlated with how to conduct monetary policy.


• Change in inflation target timeline would not be optimal.


• Like the idea of an open letter to explain missing inflation targets, it is about accountability.

05 Jun 2023 - 16:19- Fixed IncomeData- Source: Newswires