Rodrigo Vergara, president of the Central Bank, assured the interest rate’s normalization process will begin on the short term due to the high and persistent inflation, which is on the 5 percent in twelve months.
The prices rates, the moderate economic development and, specially, the lower confidence of companies and consumers, are the main concerns, internally.
“The monetary policy will be continue being expansive, but with a lower impetus”, stated Vergara during a seminary organized by the Sofofa. In addition he informed that the first interest rate increase on the monetary policy (actually in a 3%), is going to happen very soon.
By the external level, the Chinese deceleration, the imminent increase of the interest rates on the United States and the Latin American panorama, are the main factors of risk for the Chilean economy, reiterated Rodrigo Vergara.
The Central Bank is observing with attention, what is happening in Brazil, which its economy is on recession and suffering an historical devaluation of its currency, the real.
Vergara also reminded that its development projections for the local economy are of 2 to 2.5 percent for this year and of 2.5 to 3.5 percent for the next year. Those are downward trend, thus it would depends exclusively on the risk factors. From the inside and outside.