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The IMF highlighted the drop in inflation as a sign of the improvement in the credibility of the BCU

The IMF highlighted the drop in inflation as a sign of the improvement in the credibility of the BCU

The deputy managing director valued the progress in the CPI measurements, although she asked the government “not to take its foot off the pedal.”

The deputy managing director of International Monetary Fund, Antoinette Sayeh, highlighted the decline of the inflation by pointing out that “the predictability of the Central Bank of Uruguay (BCU) and this is a sign of improved credibility.”

The official praised the latest measurements of the CPI, which is nine months into the target range, noting: “Going from a maximum of almost 10% in September 2022 to 4.7% in February of this year is great progress.”

Sayeh He valued the role of the government and maintained that “it has done things in a way that allows progress to be felt in the economy,” when participating in the conversation organized by the BCU and called “Uruguay and the global economy: challenges and opportunities to achieve sustainable growth.

In any case, he asked “that policymakers not take their foot off the pedal too quickly or declare victory too soon,” indicating that, despite the improvement, “there is a lot of work to do.”

Embed – Conversation between the president of the BCU and the deputy managing director of the IMF

Labat highlighted the improvement in inflation expectations

During the day, the president of the BCU also spoke, Diego Labat, who focused on the fact that the “central objective” of the BCU is to reduce inflation and valued that “the results are coming.”

In that sense, he highlighted the importance of having “a framework of monetary politics based on an inflation targeting regime that allowed the current results” and assessed that “the three inflation measures inflation expectations that the Central Bank monitors continue with a downward trend and are at a historical minimum.”

Uruguay is “a pioneer and an example” in sustainable finance

On the other hand, Sayeh highlighted the country as “a pioneer and a global example” in sustainable finance, in line with what was discussed yesterday with the Minister of Economy and Finance, Azucena Arbeleche.

“I think they have been really pioneers and the example they are setting for other countries at the climate level is impressive,” said the leader of the IMF, native of Liberia and noted: “There are quite a few lessons that countries can learn based on what you have been working on.”

Source: Ambito

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