The uncertainty of the macroeconomic and financial picture demands that banks adopt a prudent policy of provisioning against future losses. The measure regarding the partial non-deductibility of banks’ interest expense is equivalent to an increase in funding costs of nearly 10 basis points.
Instead, we have built in an extra degree of caution in our forecast for exports and investment relative to our January projection. Total inflation has been close to 2 per cent and is expected to dip to about 1.7 per cent in the middle of the year before returning to near its target.