translated from Spanish: Former under-secretary of the Treasury lowered the profile to fall in the markets: «There is a lot of overreaction»

Former Undersecretary of the Treasury Alejandro Micco, lowered the profile to the fall in world markets that was recorded on Monday and the historic rise of the dollar in Chile – which exceeded 840 pesos – and assured that for now it did not the Central Bank and the Government need to intervene.
In an interview with Radio Cooperativa, Micco considered that «there is a lot of overreaction in terms of market movements in all these last weeks», taking into account the situation of the coronavirus.
The former undersecretary noted that «given the situation that we must face from the outside towards our domestic economy, I believe that the Central Bank and the Treasury have to keep the few ‘munitions’ that are left – in terms of low rates – for what comes in the short Chile. The most political issue, the plebiscite.»
He adds that «it’s good to have certain tools there for what can be a pension for more internal-political development. We all know that in election times more stressful situations can always arise, and for that I think it’s good to maintain them, a low rate potential or some fiscal policy injection.»
Micco argued that «the important thing is to be looking day by day in great detail what is going on with companies and financial institutions regarding their balance sheet, that is, that they will not fall into problems of insolvency or liquidity in the short term» Ended.

Original source in Spanish

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