But monetary policy has its limits too, which we must respect if we do not want this essential pillar of price stability to weaken. This is why, after having higher and more persistent inflation levels than we had foreseen, we have decided to withdraw part of the monetary impulse, with the objective of bringing inflation to the target within a two-year horizon. Monetary policy will remain expansionary, with the real rate below its neutral level for a prolonged period of time. With that, we are certain that we will continue to contribute to the recovery of growth and hold unemployment within boundaries. But, at the same time, we will also ensure the achievement of price stability. I would like to conclude by emphasizing that, despite the pessimistic atmosphere associated with the developments in the world economy, plus the cases of collusion and other legal issues and, I will say it, the stress that has pervaded some important local discussions, from a macro standpoint the conditions to resume strong growth are present. However, we must be ready to confront a more complex scenario. This means that every aspect that I have mentioned has to improve. As for monetary policy and our role as financial regulator, we will continue to work to pursue the objectives that we have been entrusted, namely to safeguard price stability and ensure the normal functioning of internal and external payments. Thank you.
The baseline scenario reflects those events believed to be the most likely to occur with the information at hand at the closing of the Reports. There are risks, however, that, if materialized, could reshape the macroeconomic outlook and thus alter the course of monetary policy. About the external scenario, it is still early to know how the policy rate increase in the United States will affect the global economy. A first look shows that the markets have taken it calmly, stock prices rose and the dollar lost some value against the other currencies. Of course the way this process will unfold is an important source of risk, especially because of existing differences between what market expectations suggest and Fed’s statement about how fast and how far it will raise the rate. Plus there is divergence in the monetary policy among the developed countries and its potential effects on the global value of the dollar. To the extent that this continues, the pressures for a more appreciated dollar will persist, affecting commodity prices and our own currency. In China, an abrupt adjustment is now less likely, but doubts remain about how its economy will contribute to the recovery of global activity and commodity prices, especially now that they are rebalancing growth toward consumption and services. Finally, the complex situation in Brazil and the need for further tightening in some Latin American economies continue to pose a major risk. A worsening of the economic outlook in the region would affect external demand and possibly financing conditions facing Chile.