After 18 months of continuous increases, and after a meeting of its board of directors, the Central Reserve Bank (BCR) halted increases in the reference interest rate and kept it at 7.75%.
Through a statement, the issuing entity explained that this does not necessarily imply the end of the cycle of increases, since it indicated that this will depend on the new information on inflation and its determinants.
“A decreasing trend of year-on-year inflation is projected since March with a return to the target range (between 1% and 3%) in the fourth quarter of this year, due to the moderation of the effect of international food and energy prices, due to the reversal of supply shocks in the agricultural sector and a reduction in inflation expectations for the rest of the year”, indicated the BCR.
Look: There are 1,879 paralyzed works throughout the country
He also pointed out that the significant increase in international energy and food prices since the second half of 2021, accentuated by international conflicts, has led to a sharp increase in inflation rates globally in magnitudes not seen in many years and towards levels significantly above the inflation targets of central banks, both in advanced economies and in the region.
“In the case of local inflation, this has been accentuated by social conflicts since December,” added the issuing entity.
On the other hand, he pointed out that most of the leading indicators and expectations about the economy deteriorated in January and remain in the pessimistic range.
