Investor Presentaiton
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Enhancements to monetary policy framework
under the inflation targeting regime
Once the epidemic recedes, the Central Bank will focus on
disinflation strategy as its overriding objective, planning to:
o tighten monetary policy to anchor inflation expectations within inflation
target.
o re-assess the policy instrument with the possibility to revert to the short
term reference rate to improve signals to economic agents.
In the Monetary Policy Committee in April, 2020, the Central Bank
introduced innovations to its communication and transparency
strategy.
Strong coordination between fiscal, monetary and income policies:
monetary authority's commitment to break inflation expectations inertia
and the new wage-setting guidelines for the private sector prioritizing
employment creation, should reinforce disinflation pressures as softer
economic activity cools down price increases.
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