De Gregorio: VAT reduction will not have significant impact on economy

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SANTIAGO.- The president of the Central Bank, José de Gregorio, stated this morning that a decrease in the Value Added Tax (VAT) will have minimal effects on the economy since “the probability of this reaching the public is very small”.

De Gregorio explained that at this point in the economic cycle, this tax reduction will not have much impact on product prices.

With respect to the exchange rate, the president of the issuing institution reiterated to exporters that the organization has not ruled out an exchange rate intervention, if and only when the benefits of such an action will be greater than the costs.

In his presentation to Asexma, De Gregorio stated that the Central Bank is also considering the use of other financial instruments such as currency control in addition to the already mentioned exchange rate intervention.

Additionally, he explained that the Central Bank will not come to the rescue of those who try to make a profit from this situation.