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.
Page 11 of 18  18  19  20  21  Figure 5 Working-age population forecasts 19  19  2018  18  18  17  17  16  16  15  Millares  (million persons, 2002-2050)  15 2014  14  14  13  13  12  12  11  11 02  05  08  11  14  17  20  23  26  29  32  35  38  41  44  47  50  Source: National Statistics Institute (INE). Table 1 Trend GDP growth forecast (percent) Trend growth (*)  Contribution to non-mining GDP growth  Total GDP  Non-mining GDP  Mining GDP  TFP  Labor  Capital  3.4  3.5  2.0  1.0  0.9  1.7  2019-2028  (*) Weighted mining is 11.9% of total GDP. VAT and import duties are assumed to grow a the same rate than non-mining GDP. Source: Central Bank of Chile.