An additional dimension of the monetary policy decision of last Friday is to clearly separate the implications for the MPR of recalibrating the monetary impulse in the face of the current configuration of structural parameters and economic variables, of the responses that might be necessary in the face of the evolution of macroeconomic conditions. As I have stressed in this presentation, the world economy is experiencing a delicate moment, where a declining phase of the cycle is combined with high policy uncertainty in the world's leading economies and where financial markets rely heavily—perhaps too much—on the will of the central banks to react to episodes of volatility. Although the world economy continues to grow, we note with concern the escalation and expansion of trade conflicts, a stagnation of international trade, deteriorating expectations and frequent episodes of market volatility. In these circumstances, as we have pointed out before, the Chilean economy, despite its commercial and financial openness, has powerful buffers, given by the exchange rate, the depth of the domestic financial market and the anchoring of expectations. However, it also has room for robust policy responses, particularly of monetary policy. Having solved the past imbalances of the MPR helps us identify future phenomena and apply the proper responses. On other occasions we have said that the Central Bank of Chile is prepared to face new challenges. Recent decisions include an additional element in this statement: the evidence that we have the capacity to identify important changes and react with the necessary speed.
BIS central bankers’ speeches  5  In sum, we are at a juncture where achieving the right monetary and fiscal stance and successfully managing economic policy will be pivotal for the future of the Spanish economy. The course the European sovereign debt crisis takes will be a determinant of paramount importance. But whatever the scenario the role of our economic policy will remain fundamental for overcoming the inefficiencies highlighted, for redressing the lack of confidence hampering and raising the cost of external funding, and for keeping the Spanish economy safe from any incident that might occur in the European arena. 6  BIS central bankers’ speeches