Central Bank: the option of a decline in the interest rate "has lost its strength"

At its last monetary policy meeting, the Council of the Central Bank decided unanimously interest at 2.5%, accumulating thirteen consecutive months at this level

This appears from the report published this morning by the entity headed by Mario Marcel.

One of the aspects that draws attention to the document, however, is that the issuer openly admits that the option of lowering the price of the product is more important. money "has lost its strength".

It is a scenario in which, since the last meeting, "there had been only positive surprises on the side of the activity, partially tempered by the transient components, and a shock According to the document, the meeting pointed out that this option was easy to dismiss because the recovery was perceived as more solid, and although the creation of salaried jobs has not always occurred not adjusted, there did not seem to be any increase.

"It was pointed out that if the option to lower the MPR of two or three quarters was not taken, it would be inexplicable to take it today, since the risks that justified it had been greatly reduced ", the minutes.

And raise the rate?

On the contrary, the possibility of increasing the rate has more According to Central, several directors have indicated that this optio It depended on the need to advance the process of normalizing the monetary stimulus.

However, it was mentioned that it seemed premature to consider the baseline scenario. IPoM was considering an investment which, although growing more than expected in March, was still in an initial phase of dynamism, with mixed signals under construction and was waiting for the process to be consolidated at the level of major projects.

However, they acknowledged that a move in this direction would be totally unexpected and would give an urgency signal regarding the concern for upward deviations in inflation that was not justified, let alone when IPCSAE inflation had not even reached 2%.