Key Parameters of Inflation Targeting Regimes in the LA5
|Inflation target (in percent)||Who decides the target||Revisions of inflation target||Time span for bringing inflation back to target||Report to the congress|
|Brazil||4.5 ± 2||G + CB a/||Every year c/||1 year||Yes|
|Chile||2 - 4||CB b/||No revisions d/||2 years||Yes|
|Colombia||2 - 4||CB + G||Every year||1 year||Yes|
|Mexico||3 ± 1||CB||No revisions||1 year||Yes|
|Peru||2 ± 1||CB||No revisions||1 year||Yes|
The National Monetary Council (NMC), headed by the Minister of Finance and where the central bank governor is one of four members, decides the target.
The Board of the Bank of the Republic, headed by the Minister of Finance decides the target.
The NMC (see Appendix 1) sets the inflation target for the end of each year (t) by end-June two years in advance (t-2).
The Bank of the Republic of Colombia has a long-run inflation target and reviews annually the target for the following year.