Fynsa
The risk of reducing the MPR and then having to reverse it due to a misreading of the information is much higher than leaving it at 11.25% for longer than appropriate.
While equities have a relative advantage over bonds in a more inflationary environment, as inflationary pressures begin to moderate, an intermediate step in risk taking should be via investment grade fixed income.
It is important to mention that we do not believe that inflation is over and that the risks of persistence and slower normalization are still present.
The "more positive" news on inflation has been well received and will revive trade based on a "policy pivot".
The important question that arises with respect to the Central Bank's policy is how long monetary tightening will be on hold.
Approximately 7 million Venezuelans have left their country and 84% have settled in Latin American countries.
You may say I am a dreamer: economic policies work and eventually we will return to equilibrium. It's not free, though, like nothing else in life.
The market is beginning to doubt that central banks globally will remain aggressive in the fight against inflation as risks to financial stability increase.
