The adjustments in the rate will continue, despite the tariff threats by the Donald Trump government.
Subgovernor Gabriel Cuadra said in the quarterly report that a scenario cannot be ruled out in which tariffs materialize and at the same time a cut at the rate of 50 points is made.
“Conceptually there would be no way, a priori we would not have to rule out such a scenario. Although in practice we would say that it would have a lot to do to the extent how much the clash could be manifested in inflation,” he said.
For Omar Mejía, subgovernor of the Central Bank, which is available with margins to adjust this degree of restriction does not imply leading to the reference rate to other historical references.
Some members of the Governing Board stressed that “they are not satisfied with inflation levels” and that making adjustments to the rate does not mean that they have thrown the towel in the fight against inflation.
“This is as if we had a very serious patient with high inflations and we had it in intensive therapy. Subsequently, this patient shows an improvement, now has inflation below 4%, but above 3%,” Cuadra explained.
“We already take it out of intensive therapy, but the important thing is that we do not register it, we are not sending it to your home but that we keep it in treatment, we still keep it with a restrictive monetary policy,” he said.
Governor Victoria Rodríguez stood out in the presentation of the report that the monetary tightening of the past is no longer required and that they could continue with the calibration of the monetary posture at levels similar to those of February.
For subgovernor Jonathan Heath, another of the reasons for lowering the rate is that economic activity has slowed down. “We are still looking for inflation of 3%. We are not satisfied with a short level of 4%; we really want to have inflation that is on average about 3%,” he said.
