Thus, based on better growth prospects for our trading partners, favorable external financial conditions and increased terms of trade, the baseline scenario included in our Monetary Policy Report published the first days of this month, considered that, for the next two years, the Chilean economy will receive an external impulse higher than considered at the end of 2016, when our previous report was published (figure 1). 1  / Breakfast presentation at The Council of the Americas, April 20th, 2017. Figure 1 Trading partners GDP  Terms of trade (*)  (annual change, percent)  (index; 2013=100)  4.5  4.5  4.0  4.0  105  105  Mar.17  100 Mar.17  3.5  3.5  Dec.16  3.0  100  3.0  Dec.16  95  95  Sep.16  Sep.16 2.5  2.5 Avg. 00-07  Avg. 10-15  16  17  18  90  90 13  14  15  16  17  18  (*) For comparison effects with the new 2013 Benchmark Compilation, the ToT of previous Reports are adjusted to 100 for 2013. Source: Central Bank of Chile. 3. On the domestic front, inflation has been consistent with what was expected in December. The annual variation of the CPI index fell to 2.7% in March, a significant drop compared to the 4.5% figure of a year ago. The behavior of the nominal exchange rate, which has appreciated relative to its level one year ago, has been a fundamental driver of inflationary dynamics.
Table 1 Domestic scenario (annual change, percent)  2015  GDP Domestic demand Domestic demand (w/o inventory change) Gross fixed capital formation Total consumption Goods and services exports Goods and services imports Current account (% of GDP) Gross national saving (% of GDP) GFCF (% of nominal GDP)  2.3 2.0 1.7 -0.8 2.4 -1.8 -2.7 -2.0 21.4 23.6  2016 (e)  2017 (f)  2018 (f)  Dec.16 Report  Mar.17 Report  Dec.16 Report  Mar.17 Report  Mar.17 Report  1.5 1.1 2.0 -0.6 2.8 0.1 -1.4 -1.7 19.3 22.2  1.6 1.1 2.0 -0.8 2.8 -0.1 -1.6 -1.4 20.2 23.2  1.5-2.5 2.6 2.0 0.7 2.4 2.0 4.1 -1.9 19.2 21.7  1.0-2.0 2.3 1.9 0.2 2.5 1.6 4.3 -0.9 20.3 22.5  2.25-3.25 4.1 2.8 3.0 2.8 2.7 7.2 -2.1 20.5 22.6  (e) Estimate. (f) Forecast. Source: Central Bank of Chile. 14. Or growth scenario also assumes that monetary policy will remain expansionary throughout the policy horizon. Following our communication in December, when we signaled that an additional impulse was necessary for inflation to converge to the target, during the first months of the year, we reduced the monetary policy rate (MPR) by 50 basis points (bp), leaving it at 3%. These actions meant anticipating our December announcement. Later, in our March Report, we announced the need of a slightly greater monetary policy impulse.