The Chilean economy has made a rapid recovery from the recession caused by the Covid-19 pandemic, far exceeding expectations. This recovery has been made possible by the adaptive capacity of businesses and individuals and the breakthrough in the vaccination process, which has allowed for a significant process of openness. All of this was underpinned by the largest deployment of policy measures ever known in Chile in the face of an exogenous shock, as well as by an international environment marked by simultaneous action to contain the crisis, spearheaded by the central banks and other authorities of the world’s largest economies. However, the extension and persistence of some local measures, coupled with households’ high propensity to consume the resources received, has had an impact on private spending that has surpassed everyone’s forecasts. In a context in which supply has yet to fully recover, this has significantly changed our assessment of the pressures facing the economy, reflected in an increase in inflation and its near-term outlook. The depreciation of the peso has also contributed, partly due to the perception of a worsening of the economy’s fundamentals resulting from the liquidation of long-term savings through successive massive withdrawals of pension savings and the deterioration of the fiscal accounts, all in a climate of high local uncertainty. Thus, interest rates, risk premiums and the stock market’s performances look poor when compared to their external similes. The need to avoid the accumulation of macroeconomic imbalances which, among other consequences, could lead to a more persistent increase in inflation beyond the two-year 3% target, has led the Board to alter the monetary policy stance. The rapid evolution of the macroeconomic scenario, inflation expectations and sensitivity scenarios associated with greater pressures on prices, configure a scenario where the Central Bank has to act promptly to ensure inflationary convergence. For this reason, at its August meeting the Board raised the MPR by 75 basis points (bp) to 1,5% after having raised it by 25 basis points in July. It also estimates that for inflation to converge to the target it will need to continue to withdraw the monetary impulse, bringing the MPR at levels similar to its neutral towards the middle of the first semester of 2022. From there onwards the evolution of the MPR will depend on the occurrence of the sensibility scenarios described by the interest rate corridor.