Julio Velarde at the World Economic Forum: “I think inflation is reducing around the world. “We will probably reach the target range in the next two months”

“What’s next for monetary policy” in the world, was the debate in which the president of the Central Reserve Bank of Peru, Julio Velarde, participated in his second presentation at the World Economic Forum that is taking place in Davos, Switzerland. .

The panel included Thomas Jordan, governor of the Swiss National Bank and member of the Bank for International Settlements. Mark Carney, former governor of the Central Bank of Canada and the Bank of England, also participated. The panel was moderated by Martin Wolf, editor at The Financial Times and renowned journalist specializing in economics and finance.

Velarde Flores recalled that the Central Reserve Bank of Peru was the first among emerging markets to react and raise its reference interest rate (in August 2021) in the face of inflationary pressures, and is currently one of the first countries to reduce the rate. inflation to close to its target range.

“I think inflation is coming down around the world. And we will probably reach the target range. Some countries could reach it in 2025; In our case, inflation is close to the target range, and we expect it to be within that objective in the next two months. So we are pretty good,” she stressed.

Likewise, he highlighted the importance of the credibility that central banks will react if inflation accelerates.

Panel officials also discussed the standard monetary policy toolkit, and how central banks can adapt and innovate to remain effective stewards of the global economy.

Velarde Flores, participates in the World Economic Forum, an event that has been taking place from January 16 to 19 and brings together various political authorities from around the world, as well as central governors and finance ministers, academics, private institutions and investors from around the world. .