The Central Bank today announced the increase in the monetary policy rate from 6.50% to 7.25%, an increase of 75 basis points.
In a statement, the bank indicated that the rate of the permanent liquidity expansion facility (1-day repos) increases from 7.00% to 7.75% per year and the interest-bearing deposit rate (Overnight) from 6.00% to 6.75% per year.
He explained that this decision is based on an exhaustive evaluation of the recent behavior of the world economy and its impact on inflation, influenced by geopolitical conflicts and the shock of global costs.
It shows that the dynamics of prices continue to be affected by external factors which have been more persistent than expected, associated with the extraordinary increase in the prices of oil and other raw materials, as well as the high costs of international container transport and other disruptions in supply chains.
In addition, it refers that to these external components, internal pressures have begun to be verified in recent months to the extent that aggregate demand has recovered notably in relation to pre-pandemic levels and the rates of various services are adjusted. the economy.
In particular, the monthly variation of the consumer price index (CPI) stood at 0.49% during May 2022, while the interannual inflation, that is, in the last 12 months, moderated slightly to 9.47%.
In its statement, the Central Bank details that year-on-year underlying inflation, which excludes the most volatile components of the basket, reached 7.29% in May, reflecting second-round effects on production associated with supply shocks of external origin and internal pressures from demand.
"To contribute to counteract inflationary pressures, The Central Bank has significantly reduced the excess liquidity of the financial system, through open market operations and the gradual return of the resources that had been granted during the pandemic"holds the bank.
He added that these measures have succeeded in accelerating the monetary policy transmission mechanism, contributing to adjustment in interest rates and to a significant moderation in the growth of monetary aggregates.