Another Chilean Rate Cut

November 19, 2013

The Central Bank of Chile’s policy interest rate was reduced 25 basis points to 4.5%.  Similarly sized cuts were implemented after the prior meeting on October 17 and in January 2012.  Chile has experienced inflation below the 2-4% target, falling expected inflation, and slower growth in domestic demand.  “The Board reiterates its commitment to conduct monetary policy with flexibility, so that projected inflation stands at 3% over the policy horizon.”  That’s twice as much as the CPI increase between October 2012 and October 2013.

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

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