BCR: Autonomy allows achieving inflation goals

BCR: Autonomy allows achieving inflation goals

A few days ago, respect for the autonomy of the (BCR) for the declarations of the owner of the (MEF), Kurt Burneo, who pointed out that “we need to sit down and talk with the BCR to harmonize the monetary policy of the entity with the fiscal policy of the MEF.”

Subsequently, the official clarified the issue, indicating that what he was referring to is coordination. However, it is important to remember why the independence of the BCR has to be maintained.

In that sense, the former Minister of Economy Luis Miguel Castilla He explained that the autonomy of the issuing body has helped the macroeconomic stability of the country.

LOOK: Economy Minister Kurt Burneo insists on coordinated work with the BCR, but says he will respect its autonomy

“The autonomy of the Central Bank is established in article 84 of the Constitution because, when it did not have it, it was subordinated to political power and that is when macroeconomic imbalances begin to take shape.”, he explained and recalled the “inorganic emission of coins”; that is, the famous “little machine” before the 1993 Constitution.

Likewise, he explained that the competence of the entity is “price stability, not ensuring that there is greater economic growth”. The MEF is responsible for the latter.

“If the BCR were not increasing the reference interest rate (currently at 6.5%), what we would have is higher inflation (in July, and 12 months later, the Consumer Price Index in Metropolitan Lima is at 8.74%) . If it were not executing what it does, inflation would have a greater impact on the pockets of Peruvians”he highlighted.

LOOK: Inflation rate expectations rise for 2022, according to BCR

For its part, Mario Guerrero of Scotiabankconsidered that one of the most important locks that the BCR has is the prohibition of granting financing to the public treasury.

“You have to remember that this happened in the 1980s, and that financing generated the hyperinflation of that time”he stated.

Similarly, he commented that although the coin-issuing body is independent, “That does not prevent him from coordinating with the MEF”.

Guerrero also commented that “it would be difficult” for the Central Reserve Bank to meet inflation targets if it did not have the autonomy it does.


The professor of Economics at the Universidad del Pacífico (UP) Marco Ortiz He recalled that last year the dollar rose above S / 4 and there was a capital outflow, but that the BCR in those cases intervenes in the exchange market to avoid volatility.

“The BCR intervenes to reduce volatility. When there is a lot of noise in the market, he tries to lower it to be able to analyze what is happening in the market”, accurate.

He stressed the importance of understanding the independence of the BCR, “which has its limits because it is supervised by the Comptroller’s Office; that is, he does not have carte blanche to do what he wants”. “The government should not interfere in monetary management because that is very dangerous”he asserted.


  • On March 9, 1922, the law creating the BCR was promulgated and the institution began its activities on April 4 of that year.
  • It began with the issuance of banknotes the same year of its creation. The monetary unit was the Peruvian gold pound.


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