Weighing all these factors, on July 14th we announced an FX intervention program, completely sterilized, very similar to the one conducted in 2019 consisting in spot and forward sales and a preventive liquidity program through FX swaps. These interventions are exceptional tools to provide a backstop on destabilizing dynamics on financial markets. As a result of the intervention, we saw a moderation in all metrics of volatility and reduced frictions in the process of price formation. It is important to appreciate that coincidentally with the FX intervention announcement, the winds in the global markets became more constructive. Given this more favourable outlook, the program ended in September as planned. Regarding inflation, as stated before, its high level is the main challenge the Central Bank is facing. Beyond its high level, since June’s 2022 Monetary Policy Report there was an assessment that inflationary persistence was on the rise, amid constant and significant upside surprises in inflation and rising expectations in different timeframes. For these reasons the central bank could not stay still. Beginning early in July 2021 the Board decided to raise rates from the ELB at 0.5% to 11,25% in October of this year. This has been done swiftly and decidedly helping to resolve the macroeconomic imbalances that the economy accumulated. In fact, spending is slowing, the exchange rate has appreciated in recent weeks and after a very long period of higher-than-expected inflation private agents start adapting to the environment by adjusting expectations downwards.
If necessary, it will therefore remain active in the foreign exchange market to influence monetary conditions. Thank you very much for your attention. I will now be happy to answer your questions. BIS central bankers’ speeches  1