The recent reduction of the MPR is part of a necessary adjustment to deal with recent changes in our macroeconomy and, as I said, ensure compliance with our inflation objective. Going forward, further changes to the MPR will depend on incoming information and its implications on the economy’s evolution. Actually, the baseline scenario does not foresee the need for any significant changes in the MPR but, should such need arise, monetary policy has room and is prepared for further adjustments. BIS central bankers’ speeches  1  Over the period, both the real and the nominal exchange rates have depreciated, which is part of the process of restructuring the sources of growth after some time when domestic demand has been the primary driver of such growth. Let me now describe for you our baseline scenario and the main risks we have identified in our reports. Macroeconomic scenario Chile’s third-quarter growth was 4.7 percent y-o-y. Mining grew strongly, boosted by the startup of major investment projects of recent years. Thus, mining exports have increased, helping to reduce the current account deficit. Sectors other than natural resources, meanwhile, continued to post lower growth rates than in 2012 (figure 1). This, together with the revision to growth rates of earlier quarters, confirmed that the Chilean economy has lost some strength compared with last year. On the expenditure side, the slowdown extended to each and every component, including private consumption, which was accompanied with significant inventory depletion (figure 2).
8  BIS central bankers’ speeches  Figure 3 Inflation indicators (annual change, percent) 10  10  8  8  6  6  4  4  2  2  0  0  -2  -2  -4  -4 06  07  08  09  10  11  CPI  EES two years hence  12  13  CPISAE  Sources: Central Bank of Chile and National Statistics Institute (INE). Table 1 International baseline scenario assumptions 2012  2013 (f) Mar.13 Sep.13 Report Report  Growth Trading partners' GDP World GDP at PPP  3.4 3.1  3.6 3.3  3.3 3.0  2014 (f) 2015 (f) Mar.13 Sep.13 Dec.13 Sep.13 Dec.13 Report Report Report Report Report (annual change, percent) 3.4 4.2 3.6 3.6 4.0 3.8 3.0 3.9 3.5 3.5 3.9 3.7  United States Eurozone Japan China India Rest of Asia (excl. Japan, China and India) Latin America (excl.