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Extension protests which are developed at the national level, can affect not only the country’s GDP, but also prices, warned the president of the Central Reserve Bank (BCR), Julio Velarde.
“This can affect not only the economic growthbut also inflation,” Velarde said during a meeting of the World Economic Forum (WEF).
However, the head of the BCR argued that this scenario of political instability, which the country has been experiencing since December, is not the main factor determining inflation.
“We have to get used to political instability (…) Definitely this period [de protestas] This may affect food prices, but we believe that this will not be the main driver of inflation,” he commented.
For now, Velarde points out that the monetary policy adjustment is expected to bring inflation to the upper end of the target range of 3% by the end of 2023.
“We hope that there will be no new consequences, and the adjustment we made will lead to inflation lower, we hope to reach 3% at the end of this 2023,” he elaborated.
Recall that the central bank recently confirmed that inflation in the country will begin to decline from March, especially due to falling world prices and a decrease in imported goods.
Expectations for this year are between 4.1% and 4.5%, and the bank’s forecasts suggest that these inflationary expectations should be lowered, especially as of March, but it has not yet been indicated whether protests they will change it.
Source: RPP
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.