balance target. the current - account deficit has been significantly reduced and projections indicate that it will return to figures in the order of 4 % of gdp this year, which compares favorably with its historical levels. restoring private savings, especially those of households, is a primary task. we have stressed many times the importance of saving, particularly long - term, as well as of a deep financial market that efficiently allocates these savings to investments that will allow us to grow and develop. the overuse of private savings during the pandemic led to a very significant drop in savings. normalized consumption, lower inflation and restored real household income will enable us to make progress in their recovery, over and above other efforts that may be made to strengthen them. this is another good reason why we must continue firmly in the process of inflationary convergence. it is vital not only for improving the welfare of households, but also to give them the tools to face the difficult times that the future might bring. there are many other challenges, of course, about which this congress has constantly shown its concern. on one side, that of fostering greater investment and growth, which are also vehicles for improving well - being through employment and household income. on our side, we reiterate that monetary policy has done and will continue to do everything in its power : by reducing the volatility of the cycle and fostering a macroeconomic environment conducive to economic development. at the same time, the country must also address some very pressing issues. how to improve our productivity, how to face the challenges of a world in constant change and, particularly, how to overcome the impact that the pandemic had on such significant aspects as education. dear senators, the central bank has maintained a monetary policy that has played an important role in the process of resolving macroeconomic imbalances, helping inflation to decrease and move towards the 3 % target. if this path is maintained, we will soon begin to reduce the monetary policy rate. however, this task is not over. we will remain committed and we are making every effort to ensure that this high inflation ceases to be a problem for our country and that it is brought down to 3 % within the policy horizon. thank you. figure 1 inflation indicators ( 1 ) core inflation of goods and services ( 1 ) ( annual change, percent ) ( annual change, percent ) cpi core cpi ( w / o volatiles ) cpi volatiles core services ( w / o volatile

2 16. 5 36. 9 27. 2 ( 1 ) data through december 2018, except for retailer, which are through september 2018. f & ls include arrears on factoring and leasing. arrears are 90 to 180 days, except for ccafs. ( 2 ) indirect exposure includes retailers, fl & a, ccafs, and s & ls. fl & a combines factoring and leasing companies and car dealership. ( 3 ) roa is calculated as earning over assets ; the leverage ratio as equity over assets. source : central bank of chile based on data from the sbif ; cmf ; and suseso. now, regarding potential trade - offs associated to the chilean regulatory framework : has the chilean regulatory framework in place be repressive? the evidence shows that chile ’ s banking strength have not undermine its financial development under different perspectives. the chilean financial system has evolved significantly in recent decades, and its contribution has been key in the economic development of the country and the construction of a more prosperous, healthy and modern economy. today, the chilean financial sector is one of the most developed in the emerging world. in five decades, it has gone from being almost exclusively made up of traditional banks, to include several other market participants, such as pension funds, general fund administrators and insurance companies, among others. the chilean financial system relatively outperforms with respect to other comparable countries in dimensions such as market capitalization, number of branches per inhabitant, and participation in domestic credit. on the other hand, the banking system in particular is positioned among the strongest in the reference group of emerging countries according to comparable international assessments. page 7 of 12 central bank of chile september 2019 high - level policy seminar on integration or fragmentation? international capital flows in the post - crisis world, september 2019 banking sector central bank of chile the banking sector in chile looks solid bank financial strength index chilean financial development ( * ) ( percent, moody ’ s weighted average long - term banks rating ) ( relative percent ) banking sector saudi arabia chile china malaysia poland mexico peru thailand indonesia philippines colombia uruguay panama south africa india romania hungary paraguay bulgaria russia brazil turkey vietnam nigeria argentina ghana egypt ukraine car roa roe cap. / assets 1 - npl / l market cap financial sector 1 / cds domestic credit oecd chile derivatives lac branches eme ( * ) data are relative to the maximum on each dimension at the end of 2016 or to the latest availability. sources : moody ’