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BCR on political crisis: ‘It affects business confidence’

The political crisis continues to deepen and has economic repercussions. | Font: Andean

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political crisiswith the recent change in the cabinet and the accusations against President Pedro Castillo and his entourage, continues to influence the country.

Now in the middle of it political uncertainty According to the Central Reserve Bank (BCR), economic expectations have deteriorated and remain pessimistic.

“The political situation has already taken a toll on business confidence, and that’s a fact that’s affecting economic activity,” said Adrian Armas, chief economic research manager at BCR.

As of July, BCR data shows that companies’ expectations about their position in the next three months are pessimistic. As regards investment in Business and hiring more workers is also clear that they are in the red

Despite this situation, Armas clarified that the price of the dollar in the country has not skyrocketed because of the economic support he has.

“Until now, no noticeable impact (in the exchange rate) has been identified, our economy has strong macroeconomic fundamentals, in monetary policy and fiscal, and these basic principles can help,” he said.

During the conference, comments were also made regarding the meeting between Economy Minister Curt Burneo and BCR President, Julio Velarde.

“There are always conversations and every organization strives to achieve the goals that legislation sets for it, in the case of BCR it is the preservation of monetary stability, which is the basis on which BCR applies its actions,” said Armas.

Recall that the meeting of the two main authorities Peruvian economy This happened after the head of the MEF pointed out the need to harmonize the subject’s monetary policy with the fiscal policy of its portfolio.

Despite the doubts caused by his statement, the MEF statement indicates that Burneo emphasized his absolute respect for the autonomy of the central bank.

Source: RPP

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