Governor Gabriel Galipolo told lawmakers inflation expectations for 2028 are unanchored due to supply shocks and an overheated economy.
He cited the Iran war and El Niño as current supply shocks and noted core services inflation under significant pressure while rates stay restrictive.
Galipolo disclosed an investigation finding two central bank officials received improper benefits in the Banco Master case, now handled by the Comptroller General.
He warned against punishing mismanaged banks, stating Banco Master’s liquidation stemmed from failure to meet requirements.