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 Income- Source: Newswires
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