Many have questioned the effectiveness of monetary policy in an environment of higher than expected fiscal deficit level and borrowing programme of the government as also inadequate fiscal measures to improve the supply situation.
Their forecast for the year is about 6.0 percent-but, I suppose, now that we are [the central bank] revising it upwards, I suppose, they will revise theirs as well. What is worrisome is, although our forecast for 2024 is closer to 3.0 percent than to 4.0 percent, the private sector forecast is 4.0 percent. We call this the "disanchoring of inflationary expectations."