Rosanna Costa: Central Bank of Chile's Annual Report

Presentation of Central Bank of Chile's Annual Report by Ms Rosanna Costa, Governor of the Central Bank of Chile, before the Honorable Senate of the Republic, Santiago de Chile, 7 December 2022.

Central bank speech  | 
29 December 2022
PDF full text
 (470kb)
 |  19 pages

Introduction

Mr. President of the Honorable Senate's Finance Commission, senator Juan Antonio Coloma; senators members of this Commission, ladies and gentlemen,

One more time, I begin by thanking the Commission for inviting the Bank to present our views on recent macroeconomic developments, their outlook and implications for monetary policy. It is this view that is presented in detail in the December 2022 Monetary Policy Report that we released this morning. This background is also the rationale behind the Board's decision at yesterday's monetary policy meeting.

This is my fourth Monetary Policy Report, and I would like to pause briefly to look back at my first few months as Governor of the Central Bank of Chile.

During this period, the institution has been significantly renewed. In February, Luis Felipe CĂ©spedes joined the Board, followed in May by Stephany Griffith-Jones, two professionals with outstanding careers in the economic field.

We have lived through a very difficult year in terms of inflation. In the March Report presentation, I stated that inflation and its outlook continued to rise and that it would reach around 10% by the middle of this year and then decline to 5.6% by the end of 2022. The estimates incorporated the price increases associated with Russia's invasion of Ukraine, with the knowledge we then had of how the conflict would unfold and its implications.