Moreover, costs could outweigh the potential benefits. If agents consider the downturn not only to be ineffective but also to compromise the achievement of the inflation target, a much less expansionary monetary policy could be necessary to realign inflation expectations. Thus, the effectiveness of monetary policy depends on our ability to timely diagnose the state of the economy and its implications on inflation, to respond consistently in setting the policy rate, giving it sufficient persistence to operate and generate the necessary credibility for markets to respond in accordance with the expected results of these interventions. At the Central Bank we are committed to ensuring these conditions. With this, monetary policy will continue to contribute to the country's welfare by maintaining low and stable inflation, cushioning the volatility of the business cycle. Likewise, although the Central Bank does not have the instruments to directly influence the growth potential of the country, it can indirectly contribute by preventing the loss of welfare that results from economic volatility; reducing uncertainty to encourage investment, production, employment and consumption decisions, and contributing to make the financial sector safer and more efficient for the benefit of the entire population. Thank you.
Source: National Satistics Institute (INE),  15  Table 1 Domestic scenario (annual change, percent)  2015  2016 Dec.16 Report  GDP Domestic demand Domestic demand (w/o inventory change) Gross fixed capital formation Total consumption Goods and services exports Goods and services imports Current account (% of GDP) Gross national savings (% of GDP) Nominal gross fixed capital formation (% of GDP)  2.3 2.0 1.7 -0.8 2.4 -1.8 -2.7 -2.0 21.4 23.6  1.5 1.1 2.0 -0.6 2.8 0.1 -1.4 -1.7 19.3 22.2  2017 (f) Mar.17 Report 1.6 1.1 2.0 -0.8 2.8 -0.1 -1.6 -1.4 20.2 23.2  Dec.16 Report 1.5-2.5 2.6 2.0 0.7 2.4 2.0 4.1 -1.9 19.2 21.7  2018 (f) Mar.17 Report 1.0-2.0 2.3 1.9 0.2 2.5 1.6 4.3 -0.9 20.3 22.5  Mar.17 Report 2.25-3.25 4.1 2.8 3.0 2.8 2.7 7.2 -2.1 20.5 22.6  (f) Forecast. Source: Central Bank of Chile. Figure 7 Real lending by type of credit (*) (annual change, percent)  25  25  Consumer  20  20 Housing  15  Commercial  15  10  10  5  5  0  0  -5  -5 02  05  08  11  14  17  (*) Horizontal dashed lines show last 15-year average for each series. Source: Central Bank of Chile using SBIF data.