No Change in 5.0% Chilean Monetary Policy Rate

April 17, 2012

As expected, the Central Bank of Chile reference interest rate was retained at 5.0%.  Such had been cut by 25 basis points in January, that being the first reduction since July 2009.  But no follow-through easing has occurred, and the balance of risks regarding the direction of the next policy move has shifted since January.  The likely path of inflation is likely to be higher than imagined then, and growth prospects are better.

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

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