Central Bank of Chile Keeps Policy Unchanged

September 12, 2013

The central bank board left the monetary policy interest rate at 5.0%, its level since a sole 25-basis point cut in January 2012.  Previously, the rate was raised 475 basis points in a dozen moves between June 2010 and June 2011 after having been cut by 775 bps to 0.5% during the first seven months of 2009.

A statement released today stresses continuity in economic trends and the outlook of officials. “Recent output and demand figures continue along the lines of previous months: moderate growth in output and strong private consumption. Headline inflation is still within the tolerance range, while core measures continue to hover around 1% annually. Inflation expectations have remained near the target in the policy horizon.”  No changes in the last paragraph that broadly tells what will guide future policy decisions.

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

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