The Monetary Policy Report serves three central objectives: (i) to inform and
explain to the Senate, the Government, and the general public the Central
Bank Board’s views on recent and expected inflation trends and their
consequences for the conduct of monetary policy; (ii) to publicize the Board’s
medium-term analytical framework used to formulate monetary policy;
and (iii) to provide information that can help shape market participants’
expectations on future inflation and output trends. In accordance with
Section 80 of the Bank’s Basic Constitutional Act, the Board is required to
submit this report to the Senate and the Minister of Finance.
The Monetary Policy Report is published four times a year, in March, June,
September, and December. It analyzes the main factors influencing inflation,
which include the international environment, financial conditions, the
outlook for aggregate demand, output, and employment, and recent price
and cost developments. The last chapter summarizes the results of this
analysis in terms of the prospects and risks affecting inflation and economic
growth over the next eight quarters. A number of boxes are included to
provide more detail on issues that are relevant for evaluating inflation and
monetary policy.