12  Figure 6 IMCE (1)  Depuc (2)  (diffusion index) Trade  80  (index, 1 January 2012 = 100) Construction  Manufacturing  500  IMCE w/o mining  60  375  40  250  20  125  0  0 18  19  20  21  22  18  19  20  21  22  (1) Business Confidence Index. Value above (below) 50 indicates optimism (pessimism). (2) Economic and Political Uncertainty Index. Moving 30-day average. As from December 2021, the index includes an update to the dictionary of words used for its construction, as a way of incorporating new elements that influence local conditions. Sources: UAI/ICARE and Central Bank of Chile based on Becerra and Sagner (2020). Figure 7 Current account by institutional sector (percent of GDP, moving one-year average)  Households  10  Government  Businesses  Current account  5 0 -5 -10 -15 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 2016  2017  2018  2019  2020  2021  2022  Source: Central Bank of Chile.
Among other things, in our own bank lending survey, banks have been reporting an increase in loan demand for all loan categories for two successive quarters, as well as an easing in credit standards for loans to enterprises. However, we should not forget that credit standards overall remain rather tight from a historical perspective. As mentioned before, it was exactly against the backdrop of weak credit dynamics contributing to a subdued inflation outlook that we decided in early September to adopt a number of additional monetary policy measures, specifically designed to support the  2  BIS central bankers’ speeches  extension of credit to the real economy. As they work through the economy, these measures will help inflation rates return to below, but close to, 2%. What else is needed: well, it is now in the hands of governments to act decisively on further structural reforms that will ensure higher sustainable growth and employment in the euro area. Also, on the fiscal policy side, governments should not unravel the progress made in fiscal consolidation, but use any leeway to make fiscal policies more growth-friendly. As regards monetary policy, we remain fully determined to counter risks to the medium-term outlook for inflation. As I said in the European Parliament last Monday, we stand ready to use additional unconventional instruments within our mandate, and alter the size or composition of our unconventional interventions should it become necessary to further address risks of a too prolonged period of low inflation. BIS central bankers’ speeches  3