José De Gregorio: The Monetary Policy Report and the Financial Stability Report Presentation by Mr José De Gregorio, Governor of the Central Bank of Chile, before the Finance Commission of the Honorable Senate of the Republic, Santiago de Chile, 16 June 2010. *  *  *  Introduction Mr. President of the Finance Commission, Senator Camilo Escalona, senators: I am grateful to this Commission for the invitation to the Board of the Central Bank of Chile to share our views on recent macroeconomic and financial developments and their implications for monetary policy. These are detailed in our Monetary Policy Report (IPoM) of June 2010 and in our Financial Stability Report (IEF) for the first half of 2010. We are presenting our Reports in the midst of a unique scenario for the Central Bank. On the one hand, both the Chilean economy and the global economy have been on a sustained path of recovery since the second half of 2009. This path has not been free of difficulties. The earthquake and tsunami that swept Chile last 27th of February, and which was a major part of our concerns when we visited this Commission in March, had negative effects on the February and March output figures. As we said in that occasion, those disruptions were restricted to the short term, as is evident in the strength of the most recent indicators. This does mean that the hardest hit areas are in a precariousness situation, especially in housing.
It will contribute to strengthening of the role of the National Bank in ensuring price stability and the stability and efficiency of the financial system in the country, as well as strengthening the capacity of the National Bank in meeting the challenges that lie ahead on the road to the accession of the Republic of Macedonia into the EU. Let me discuss briefly the results and significance of the project in relation to the further operation of the National Bank. The first and most important benefit of the project is the set of relevant findings of the experts on the existing gaps, and the recommendations for their overcoming within time frame and resources needed. In this regard, the Needs Analysis Report will be the basis for strategic planning of the National Bank and for setting the future strategy for joining the European System of Central Banks and the Eurosystem. With great pleasure I would point out that in the Report, the NBRM is regarded as a professional, independent, technically efficient and strategically oriented institution, and in some areas of central banking it is noted that it already operates in accordance with EU and ESCB standards. Also I am pleased to say that some recommendations that were given  BIS central bankers’ speeches  1  during the project have already been implemented, which encourages me to confirm our strong commitment for implementing and applying the recommendations given in the Report.