speeches over the past year, the risk of recession has diminished in canada and globally. inflation in most economies has come down, and inflation targets are in sight. however, there could be volatility in markets as expectations shift about when and by how much central banks will lower their policy rates. and there continue to be important geopolitical and economic risks on the horizon. against this backdrop, households and businesses continue to adjust to past interest rate increases. some indicators of financial stress have risen. at the same time, the valuations of some financial assets appear to have become stretched. this increases the risk of a sharp correction that could generate system - wide stress. the recent rise in the use of leverage in the non - bank financial sector could amplify the effects of such a correction. what's most important is that to properly manage risks, financial system participants need to remain proactive. and financial authorities need to remain vigilant. let me now pass things over to carolyn. thank you, governor. let me touch on each of the sectors we cover in the fsr. i'll start with households. so far, most households have proven resilient in the face of higher interest rates and inflation. overall, we've seen households adjusting to higher debt - servicing costs. this does not mean the adjustment has been easy. clearly, there are individuals and families who are feeling very stretched. what we're evaluating in the fsr are the indicators of overall stress in the system. some of the indicators of household financial stress that fell during the pandemic are back to or above normal levels. survey data suggest renters are experiencing the biggest increase in financial stress. after hitting historical lows during the pandemic, the share of households without a mortgage that are behind on credit card and auto loan payments has come back up to - or surpassed - typical levels. and over the past year, the share of borrowers without a mortgage who carry a credit card balance of at least 80 % of their credit limit has continued to climb. among mortgage holders, indicators of financial stress have remained relatively low even as many have been coping with higher mortgage payments. since the bank began raising its policy rate in march 2022, payments have increased for roughly half of all outstanding mortgages. over the next two and a half years, most of the remaining mortgages will renew, and these borrowers are likely to face relatively larger payment increases. at the same time, many mortgage

bilateral meetings remarks on the chilean economy since september monetary policy report rosanna costa, governor of the central bank of chile 2022 imf / wb annual meetings thursday 13 to saturday 15, october 2022 recent inflation developments currently, inflation is a major concern for most economies and chile is no exception. in chile, although with a slight moderation in the last figure — september 2022 —, total inflation reached 13. 7 % yoy, while core inflation — measured by the cpi excluding volatiles — continued to rise to 11. 1 % yoy. the sum of the august and september data — both figures known after the release of the last monetary policy report ( ipom ) — reveals somewhat higher inflation than expected with the surprise coming from food prices, both volatile and non - volatile. • inflationary factors behind the evolution of inflation there are some common elements to the rest of the world and some others more idiosyncratic. among the former, there is the increase in external costs since the end of 2021, explained by the increase in the price of raw materials and food due to russia's invasion of ukraine, and the disruption of supply chains. among the internal factors, one of the main elements identified is the domestic spending imbalances accumulated during 2021 — as a result of fiscal aid and pension fund withdrawals, that reached almost 33 % of gdp —, and which is especially evident in the still high level of private consumption. added to this is the increase in wage costs associated with the tight of labor market. however, this has diminished during 2022 with the recovery of labor supply and lower demand. the peso's depreciation has also played a relevant role in the rise in inflation. the increase in the exchange rate has been caused by a combination of internal and external factors, where the former have a greater weight. in recent years, the chilean currency has lost value vis - a - vis other comparable currencies, mainly because of greater local uncertainty and some political - legislative decisions taken in previous quarters. more recently, the peso's evolution has been more linked to the dollar's global appreciation. data for the quarter ending in august shows that job creation is stagnant, the unemployment rate remains at 7. 9 % and labor participation has stabilized. on the other hand, the internet job postings index shows a decreasing trend during the year. nominal salaries present annual increases of around 11 %, and real salaries remain at negative values close to 3 %