The Central Bank continues to monitor the economic consequences left by the Covid-19 pandemic. In fact, last week, the chairman Mario Marcel decided to keep the benchmark interest rate at its technical low of 0.5%, at a time when the country is impacting the pandemic, saying they will continue to evaluate options to intensify monetary stimulus if necessary.
In this regard, they are also attentive to the health measures taken by the Government, such as the announced “Step by Step” plan. Therefore, the plan of the Ministry of Health that seeks to start the decon confinement gradually was valued by Marcel, since it gives greater clarity of how the revival of the economy will occur.
“There is greater clarity about how the restrictions will take place, under what conditions, and that is unlike what we had for the June IPoM, today we can begin to look at what the recovery of the economy might look like,” Marcel said in statements collected by Pulse.
The recovery phase, in that line, is important for Marcel, so that the supports that are channeled through the BC are not abruptly withdrawn. “For example, what the BC has ensured is that the TPM will need to keep it at this technical minimum for the next two years. On the other hand, the financing that has been given to banking is for 4 years and the measures to revive other markets such as corporate bonds have a medium-term perspective,” he explained.
“The finance minister said that as part of the economic agreement there should also be resources to encourage the recruitment of workers,” he recalled.
In all this decon confinement plan the BC will be present, since according to Marcel, as an entity “we will wet the shirt, we will leave everything on the court to be able to help and facilitate the revival of the economy in the face of an unexpected and anome shock with this, it is a commitment that we will continue to keep forward”.
Since the start of the Covid-19 pandemic, the Central Bank has been vigilant. While he has made pessimistic projections, such as the one Marcel said on June 21, when he stated that after the pandemic, “all countries are going to be poorer, most for longer than we do,” he also said that the BC projected a recovery from the third quarter.
