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By a unanimous decision, the Central Bank Board decided to raise it and decided to increase the interest rate of the monetary policy by 25 basis points, placing it at 2, 75%.
This decision is unprecedented in almost three years. In fact, the last increase took place in December 2015. On the other hand, the body's tendency is broken, which, since April 2017, maintained this indicator at 2.5%.
The Central Bank explains that the decision comes after a month when inflation (0.3%) was slightly lower than the projection, affected by specific items, such as a decline in the 39, food inflation. With this, the annual inflation of the CPI rose to 3.1% and that of the CPIEFE to 2.1%, with a sustained acceleration of the most sensitive prices to the gap of Activity, for example the unregulated services of IPCSAE. [19659003] At the same time, private expectations of inflation remain around 3% for December of this year and for one and two years.
Moreover, the Council's decision has estimated that "capacity deficits" have decreased in recent quarters and will continue to do so in line with the Monetary Policy Report's projections, which will lead to total inflation and base of about 3% over the next quarters. "
" In this scenario, the Council considers that monetary stimulus measures should start to be reduced so that the inflation outlook remains close to the target. Given the fact that, in the base scenario of the monetary policy report, the monetary policy rate will converge towards its neutral level in 2020, the timely launching of this process makes it possible to proceed with gradualism and precaution. This will provide the necessary space for the Council to define the appropriate rate of withdrawal of the monetary stimulus. It reaffirms its commitment to conduct its monetary policy with flexibility, so that projected inflation reaches 3% over the horizon over two years s. "
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