Banco Central no dose of amarga medicine to avoid inflation control

However, all economic policy decisions in Banco Central have a tendency to escalate and are still in the midst of a high inflation inflation or a crackdown on very precise control issues. This is ultimately what accrues a maximum of 1.50 percentage points (4%) in the monetary policy bowl, excluded by the issue, the night of the 27th of April.

The decision has not been sent to Costa Rica until it reaches the highest level (13.3% in the quarter ending in February 2022). Up to 4.1% of production in 2020, pandemic’s debit, recovering and cracking 7.6% by 2021, with some recovering part of the whole period; in 2022 the impulse is applied, which is due to the fact that it has the opportunity to work.

An embargo, a phenomenon that has been felt and felt since the second half of 2021, and which amenazes with debauchery in Costa Rica and the global economy, accelerating in the rate of inflation, between other aspects, in return for the demand for high prices the pandemic, the increase in the cost of transportation, is, and is, the invasion of Russia and Ukraine.

As it stands, cost-effectiveness is taking place at high prices that do not go much further (in terms of consumer price index below 5.8%, the largest increase since November 2014).

Inflation’s more or less pleasing because it has fewer options to defend against it, and as much as it feeds less than it’s, but it’s more effective than most family members who want to give it a try ellos.

On the other hand, inflation is influenced by many other indicators: reduce real yields, have an impact on the precisely regulated products, on the impurities and fuels, on the alkylation contracts and on the definition of the influences on them. the costs of companies.

In the medium in which the real bajan cups (the alcanzan interests to buy menos) the capitals can be traded in dollars and go in a higher yielding busbar and then generate equal pressures on the exchange rate.

However, as Banco Central points out, there is a risk that the impact of inflation will persistently on the expectant and generate the “second round effects” that will be most severely reversed .

Amarga medicine

As Banco Central does not want to suffer from inflation, it has decided to apply amarga medicine: to its monetary policy bowl, which is the hermit that has to influence the rest of the market cups and increase consumption , with the city the demand for prices and services and the pressure on prices.

“In order to realize the compromise of the Banco Central firm with a stable and stable inflation in the median market, to contain the expected inflation rates, to increase the monetary policy bowl quickly, to take a neutral position and to follow the plan. of tolerance around the Banco Central meta, the Junta Directiva determines that it is now opportune to have an ajuste more forte alza, from 150 base points ”, explicit membership in an envied communication is new.

The tolerance range that defines the authority for inflation is between 2% and 4%. For the second time in a row, in the middle of Banco Central, only four times as much as in the monetary policy bowl, the way of the left is 0.75%, in December, and 4% is on April 28th. This is ultimately worth the most money, of 1.50 points.

Not surprisingly, a record of this essay was found in the registers from Vienna in 2006, led by Juan Robalino, an economist who runs the Institute for Economic Research (IICE) at the University of Costa Rica.

Ralino explicitly agreed with an IICE investigation project, estimating that it is the ultimate ultimate cause having a negative effect on the profitability pronounced before 2022, between -1.5% and -1.75%. The increase projected by Banco Central, in passive energy, before 3.22% of 3.9%. This is the 29th of April to publish new projections.

“This is a series of results in the activated cups (for pre-presses) of between 2 and 2.5 percentage points. It is expected that the passive cups (for splinters) and their average placement between 1 and 1.5 percentage points. It is certainly necessary in the policy bowl to gradually increase the intermediation margin (the difference between the cups) ”Robalino explicitly.

Obstacles, the economist said, are now a means to reduce inflationary pressures and reduce the differential of the cups between the domestic and international cups of interest, thus minimizing the pressures on the exchange rate of the exchange rate.

“Inflation as the exchange rate has variables that greatly affect the cost of living,” said Robalino. Coincidentally, economist Ennio Rodríguez, president of the College of Economics.

“In general, all in the bowl of interest there is a negative effect on the creation, but inflation has a pernicious effect on the distribution of stress and affects mainly among the most vulnerable groups, except for those who have far-reaching effects. ”, Commented Rodríguez.

“It’s the dilemma for central banks. Now, in the current constancy of Costa Rica, you do not have an expansive monetary policy, because Banco Central has to advance its monetary policy with neutral anticipation, in order not to feed inflation. For the sake of it, do not correspond to the magnitude of the rise of the monetary policy bowl, “said the economist.

For Rodríguez, there is no excuse for keeping a monetary policy bowl inferior to a neutral bowl by quantum, the Banco Central being fed by a domestic inflation rate, quit cricket, agadia, if you want to go crazy in the monetary policy bowl fieron timidos against the exchange in the international and national circuits.

Leave a Reply

Your email address will not be published.