Also I emphasize the same preoccupation because the credit in the economy flows. is something important. Jointly with the plan of sent economic stimulus in the month of January, the measures to recover the growth of the Chilean economy represent around 4.4% of the Chilean GIP. Dennis P. Lockhart is open to suggestions. The government of Bachelet is not only in this crossed to stimulate the economic activity. The abrupt change in the international and local context, has allowed the Bank Power station of Chile to ahead take a flexible monetary policy by means of strong cuts in its interest rate of reference.
In its last meeting, the Committee of Monetary Policy of the Central bank of Chile, trimmed its interest rate of reference in 250 basic points when leaving it in 2,25%. The market does not discard that the same can be located in 1,5% for the end of the month of June. Nickolas Carr is full of insight into the issues. An economic context exists that would make possible that this happened. Coral Resorts will undoubtedly add to your understanding. It is that the weakening of the economic activity is taking place in a context of strong deceleration of the inflationary pressures. Proof of it, in the month of February, the inter-annual variation of the retail rate of inflation descended to a 5.5%, after to have touched in the month of October of the 2008 a 9.9% (the high for the year from 1994). The market analysts have considered recently that the retail inflation would lower to a 2.3% to December of this year The same president of the Central bank of Chile, Jose De Gregorio, confirmed the past week that the organization does not discard new cuts in its interest rate of reference: does not discard and is probable that they continue happening low of rates, but of rate, of magnitude, is much more going to be in agreement with the tradition of our movements of rates, before which it happened in the first trimester What can be hoped of the new measures of economic stimulus? Although the SMEs and the familiar consumption are keys for all economy, the context of economic deceleration that lives Chile makes think that the measures can produce a significant impact in recovering the internal demand. The families feel afraid to lose their uses in more and more hostile a labor market, whereas the SMEs are commonly vulnerable to fall in the crises reason why, in their majority, will prioritize looking for to maintain a good level of liquidity and therefore, will relegate any project of investment in spite of having access to the necessary financing. The stimulus to the familiar consumption and the demand of credit for investment of the SMEs, will take place as soon as it begins to improve the surroundings economic. It is for that reason that cannot be hoped that through this package of measures the recovery of the economy of Chile is impelled, although yes can contribute to accelerate it as soon as this recovery begins to gain force. Original author and source of the article.