Bank of Chile: No Policy Change This Month

February 14, 2012

The monetary policy interest rate was left at 5.0% after having been cut by 25 basis points to 5.0%  in January.  That ease had broken an 475-basis point uptrend, administered through a dozen moves between June 2010 and June 2011.  A statement from officials after today’s Board meeting acknowledged the slow and uncertain growth outlook faced by advanced economies but is upbeat about domestic conditions:

Economic activity and domestic demand have tended to outperform forecasts from the latest Monetary Policy Report. The labor market is still tight. Credit market conditions are stable.  Y‐o‐y CPI inflation is slightly above the tolerance range, while core inflation measures have normalized. Inflation expectations remain around the target.

Copyright 2012, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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