Central Bank in favor of 1% bank taxation

[NewsWhore]

Writing in today's Diario Libre, economist Gustavo Volmar comments that the Central Bank is in favor of the tax that would help chill the economy. "The Central Bank is trying to contain the lesser evil because it has been suffering the consequences of the fiscal deficit. Inflation, which the Central Bank has the responsibility of controlling, is on the rise. There are upward pressures on the value of the dollar. It has had to use its dollar reserves. And it needs the sovereign bonds to be placed and more loans and investments to enter the country," he writes. He also comments that the new tax would lead to an increase in interest rates, which is the same that the Central Bank has been working on by increasing its rate of reference, seeking to reduce the demand for credit and total spending in the economy. The tax would strengthen this performance, with the advantage for the Central Bank that fiscal, not monetary policy, will be responsible.

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