Meanwhile, the Federal Reserve and the BOJ maintain a positive respective 0.25 percent and 0.1 percent interest rate on excess reserves. The BOE applies a positive 0.5 percent rate on total reserves. In general, central banks maintain positive interest rates on (excess) reserves for various reasons, including maintaining the proper functioning of the interbank markets.
So, the moment we give [delivered] the 425 bps [in cumulative] policy rate increase, the peso appreciated. After a long series of policy rate adjustments, year-to-date [from 1 January to 4 April 2023], the peso actually appreciated by 2.0 percent. In other words, the exchange rate is no longer adding to the inflation problem. That is the situation.