De Gregorio: Liquidity of the financial system is returning to normal

SANTIAGO.- The president of the Central Bank of Chile, José De Gregorio, stated today that the liquidity of the local financial system is becoming more "normalized" after falling under intense pressure during September and October this year due to the global financial crisis.

"The liquidity situation has been returning to normal and has become much more stable than it was before", De Gregorio asserted while in attendance at the 2008 Annual Company Assembly.

The president of the financial entity also stated that in the short term he expects significant reductions in the country's monthly inflation figure and added that the monetary policy rate would boost the local economy over the next few months.

"Inflation continues to be a major problem and the yearly figures are still high.  Nevertheless, in the short term we expect significant reductions in the monthly inflation figure", De Gregorio declared during a presentation before business leaders.

"In the most likely situation, with lower inflationary pressure, the monetary policy would boost the economy over the next few months. This has already been predicted by market forecasts, which foresee reductions in the Monetary Policy Rate throughout 2009", he added.