"We will reduce inflation on a solid foundation" | Chronic

The President of the Central Bank of the Argentine Republic, Guido Sandleris, badured that since the implementation of the new economic policy regime, they have been corrected "almost in its entirety"the imbalances that"puts us in front of the possibility of reducing inflation in a sustained way"Although he acknowledged that February's result will remain high.

Sandleris participated in an event organized by the Libertad Foundation. In his speech, he developed the BCRA's point of view to sustainably fight against inflation. "We have corrected almost all three macroeconomic imbalances that led to the economy: the exchange rate delay, the tariff and the budget deficit"he said and said that"puts us in front of the possibility of reducing inflation in a sustained way"

The Minister acknowledged that "January inflation, 2.9% monthly, was very high and it is likely that the February figure will also be"while he is invited to badyze in the longer term.

"We have corrected almost all macroeconomic imbalances"

However, he admitted "suffering"that inflation causes in the"citizens, especially the most vulnerable, and this is why the reduction of inflation is the main objective of this central bank."."We will succeed in reducing inflation and we will do so on a solid basis"He said that from there the head of the monetary entity said that"The real exchange rate is today 59% higher than it was before the stock went out. The current account deficit for the fourth quarter (seasonally adjusted and annualized) is 1.2% of GDP, 3.8 percentage points lower than in 2017."

In the fiscal aspect, he warned that "the primary deficit has been reduced from around 5% in 2015 to 2.4% of GDP in 2018. And there will be no primary deficit by 2019"Sandleris reminded that the new monetary policy framework meets or exceeds the objectives"during the first four months of the plan. And we will do it in February"Therefore, he badured the necessity of"maintain monetary discipline"."The imbalances that have prevented inflation from receding regularly in the past are resolved or are about to be"he said.

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He clarified that the problem of inflation "This is not a recent phenomenon. Inflation was less than 10% only 17 of the last 75 years"and recognized that"Argentina has much higher inflation than almost every country in the region. Excluding Venezuela, which is experiencing an unprecedented humanitarian crisis, our country is experiencing the highest inflation in South America."

"Now we must be persistent, knowing that the results are not immediate, but without a doubt, they arrive. This is evidenced by the cases of countries close to ours already accustomed to living with single-digit inflation. There is no reason why we can not do it"He concluded.