[INF*RES*AS]  MONETARY POLICY REPORT FINANCIAL STABILITY REPORT PRESENTATION BEFORE THE FINANCE COMMITTEE OF THE HONORABLE SENATE OF THE REPUBLIC∗  Mario Marcel Governor Central Bank of Chile 5 June 2017  You may browse the Monetary Policy Report of June 2017 and the Financial Stability Report of the first half of 2017 at http://www.bcentral.cl  ∗  Introduction Mr. President of the Senate’s Finance Committee, senator Carlos Montes, senators members of this Commission, ladies, gentlemen. Thank you for your invitation to present the vision of the Board of the Central Bank of Chile on the recent macroeconomic and financial developments, projections and implications for monetary and financial policy. This vision is detailed in our June Monetary Policy Report and our Financial Stability Report for the first half of this year. In the past few months, the macroeconomic scenario has evolved in line with forecasts depicted in our March Monetary Policy Report. On one hand, inflation has brought no surprises, consistently with an exchange rate that has changed little since mid-2016 and gradually expanding capacity gaps. First-quarter activity growth was virtually flat in annual terms, largely affected by downtime in Escondida mining company, in a context of still very weak performance of sectors linked to construction investment. In contrast, consumption shows a more stable outlook, driven by significant growth in demand for durable goods, which has offset the poorer performance of the other components.
These foreign currency sales lead to a reduction in sight deposits. We will also sell foreign currency in the future if this is appropriate from a monetary policy perspective. Conversely, we also  Page 6/8  Zurich, 22 June 2023 Thomas Jordan, Martin Schlegel and Andréa M. Maechler  News conference  remain willing to buy foreign currency in the event of excessive appreciation pressure on the Swiss franc. Charts Chart 1  Table  Page 7/8  Zurich, 22 June 2023 Thomas Jordan, Martin Schlegel and Andréa M. Maechler  News conference  Chart 2  Chart 3  Page 8/8