Debate at the XV SNMPE Symposium: Tensions between the MEF and the BCR highlight economic divergences

This morning, during the XV Symposium of the National Society of Mining, Energy, and Petroleum (SNMPE), an exchange of statements occurred between two key figures of the Peruvian economy: José Arista, Minister of Economy and Finance, and Julio Velarde, President of the Central Reserve Bank (BCR), thus revealing the existing differences between both entities. The discrepancies began when Velarde criticized the legislative management of the Congress in economic matters, pointing out that the MEF should regain its technical capacity and avoid opposing parliamentary decisions. In this sense, the President of the BCR emphasized that the differences between the Ministry of Economy and Finance and the Congress have been accentuated since 2015, creating a tense environment regarding economic decision-making. In response to these comments, Arista requested a reduction in the interest rate from the BCR in order to promote economic reactivation. The Minister emphasized the importance of working together to stimulate the mortgage and credit market for the benefit of the national economy. Additionally, Arista expressed openness to dialogue and collaboration towards better economic performance. During the symposium, Velarde also made projections about inflation, estimating that it would remain in a range between 2% and 2.2% by the end of 2024. Faced with these figures, Arista responded ironically, pointing out the need to trust Velarde's projections and hoping that these results do not turn out wrong as in previous years, generating a humorous atmosphere amidst economic differences. On another note, Velarde questioned the projections of some economists regarding the time it would take to reduce poverty rates to pre-pandemic levels, labeling as "ridiculous" some estimations indicating that this process could take up to 26 years. In this regard, Arista agreed that these predictions were excessive, highlighting the diversity of economic and social situations that influence poverty and dismissing such prolonged timelines for its reduction. Amidst these differences and questions, both representatives of key economic entities in the country emphasized the importance of working in a coordinated manner and seeking common ground to boost economic and social growth in Peru. Despite the discrepancies evident in their statements, Arista and Velarde agreed on the relevance of maintaining a dialogue and constructive collaboration to address current and future economic challenges. In conclusion, the relationship between the Ministry of Economy and Finance and the Central Reserve Bank reflects the tensions and differences in economic decision-making in the country. However, the need to work together to promote economic and social development emerges as a shared priority by both entities, highlighting the importance of dialogue and collaboration in the search for solutions and strategies that benefit the Peruvian economy as a whole.