Central Bank Minutes

BANREP Minutes

• Very similar minutes to the previous meeting.
• Confirmation the two dissenters voted for a 25 bps cut.
• The majority group placed significant value on waiting for more information on key economic indicators. They discussed the importance of maintaining stable signals, rather than inducing volatility by potential rate changes in both directions.
• Inflation expectations were actually revised higher for 2022 to 3.1% from 3.0% previously.
• Despite this, the minority maintained the stance that recent inflation data has been at historic lows and anticipated a lower inflation path on the forecast horizon.
• Also highlighting the 'aggressive new wave of the coronavirus present in January' creating 'greater uncertainty over the magnitude of potential recovery in December'.