The Central Bank Council considered the possibility of being more aggressive in its latest cut in the Monetary Policy Rate (MPR).

According to the minutes of the last monetary policy meeting held at the end of January, in which it was decided to lower the MPR by 100 basis points from 8.25% to 7.25%, the directors also analyzed the option of reducing it by 125 points and even 150 points.

All the advisors agreed that the evolution of the macroeconomic scenario reflected an inflation that was converging to the 3% goal at a faster rate than expected some time ago, says the document released this Thursday.

In this scenario, there was agreement that the MPR should reach its neutral level during the second part of 2024. Consistent with this, all advisors considered more aggressive rate cuts necessary than those contemplated in the central scenario of the Monetary Policy Report ( Ipom) of December, the minutes add.

“Several advisors considered the options of cutting the MPR by 100 and 125 basis points. A counselor considered it appropriate to analyze the reduction of 150 points, although he added that to apply a change of that order in the monetary policy strategy it would be preferable to wait for the next Ipom,” the document indicates.

All the councilors agreed that the options proposed reflected the need to reduce the monetary restriction at a faster pace than planned some time ago, the newspaper La Tercera reported.