It remains to be seen whether this trend will revert or when it will do so, or even if it is a “structurally” higher demand for liquid means of payment. As to the effectiveness of conventional policy tools, we know that credit to the private sector represents around 12 percent of GDP.
Firms´ access to the capital market tends to be restricted, with evident credit rationing. The money market is highly segmented. This leads to a low relative effectiveness of the Central Bank’s reference interest rate as a tool to manage aggregate demand, and with it, pressures on prices.