Central Bank of Chile Eases Another 50 Basis Points

April 10, 2009

The Central Bank of Chile cut the monetary policy rate to 1.75% from 2.25% as expected and flagged the risk of more cuts as needed.  This was the fourth reduction this year and the smallest following cuts of 100 basis points on January 8, 250 bps on February 12, and 250 bps on March 12th.  Officials released a statement that noted the worsening global economy, negative Chilean on-year growth in 1Q09, rising unemployment, contained inflation and price expectations, and tight lending.

Copyright 2009 Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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