They highlighted that high inflation will last a few more months before beginning its descent towards the target.
A member of the Board considered that inflationary pressures come from logistical problems, high ocean freight prices, disruptions in global value chains and changes in consumption patterns, this same member, whose name is not given, said that these pressures will not be resolved soon.
Another considered that the current scenario looks even more challenging, and that it is optimistic to think that the effect of the accumulation of supply and demand shocks on inflation will be eliminated immediately. He added that it is likely to remain elevated for a long time before slowing down.
But the members of the Governing Board do not finish agreeing on how much the reference rate should be raised.
While one member considers that “it is not convenient to overreact” to the rise in rates by the Federal Reserve (Fed) in the United States, another member said that it should respond to the rate hike cycle of its peer in the US.
“The Federal Reserve’s rate hike cycle must be responded to with proportional increases so as not to relax the relative monetary stance for which there is no room for maneuver,” the Minutes read.
One member highlighted that national inflation will decrease as world inflation decreases due to lower infections and greater vaccination at the global level, as well as due to the change in the orientation of monetary and fiscal policies in economies of systemic importance.
It was also announced that a member said that the inflationary risks derived from the geopolitical conflict are limited due to the fuel price policy.
In March, inflation reached a level of 7.45% driven mainly by the increase in the price of LP gas and Magna gasoline, the latter had a 100% stimulus from the Ministry of Finance to prevent the price from being even higher. .
