Fynsa
We continue to see that, excluding the impact that electricity tariffs could have, inflationary pressures in the economy are low and continue to reflect stagnant activity.
Current measures to update electricity tariffs aim to stabilize the electricity market, protect the most vulnerable and ensure a gradual transition to market tariffs.
We maintain our preference for a short duration strategy with high indexation to the UF.
Latest PMI data show resilient growth, but defy view of further disinflation
Incoming economic information indicates that it will take longer for the Fed to gain confidence regarding the convergence of inflation and, therefore, it seems prudent to maintain a tightening stance for longer.
From a monetary policy standpoint, we see that with the recent data, not only on inflation but also on activity, the Central Bank has room to continue lowering the rate.
For the members of the board of the world's leading central bank, it is still necessary to gain greater conviction that the downward trajectory of inflation is sustainable, before initiating a downward adjustment process in the inflation rate.
It could hardly be argued that there is still a long way to go to return to normal inflation, as is happening in other economies.
Going forward, there remains some uncertainty associated with inflation convergence and monetary easing.
