Central Bank of Chile

April 12, 2013

At Thursday’s meeting, the BCC Board retained a 5.0% monetary policy interest rate for the fifteenth straight time.  The last change, a cut of 25 basis points in January 2012, was the first reduction in over two years.  Today’s statement from officials noted recently lower prices for commodities especially copper, the sharp drop of the yen, slower-than-expected domestic economic activity, but dynamic domestic demand and a tight labor market.  As for price stability, “headline and core inflation measures are around 1% and 2% y-o-y, while inflationary expectations in the policy horizon remain around the 3% target. The peso has appreciated further in multilateral terms.”  Chilean monetary policy is framed around securing the inflation target.

Copyright 2013, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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