Macarulla on monetary policy

[NewsWhore]

Lisandro Macarulla, president of the National Council for Business (CONEP) says that the Central Bank's current monetary policy affects the nation's productive sectors. "A monetary policy that increases interest rates, increases the cost of money and limits access to financing, affects productive sectors that need to evolve in order to be more competitive." He added that expensive financing will limit sectors from making the necessary investments required to strengthen their exports and reduce the deficit in the trade balance. Macarulla agreed with banker Alejandro Grullon's criticism of the Central Bank's policy of high-interest CDs that he said "sucked up" much of the nation's cash. Macarulla said that the government recently increased interest rates as a way of controlling inflation, but this move has had negative ramifications.

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