Central Bank of Chile

April 16, 2015

Board members left Chile’s monetary policy rate at 3.0% as analysts expected.  Beginning in January 2012, the interest rate was cut in 25-basis point increments then, October and November 2013, February, March, July, August, September and October of 2014, but not any further during the last half year.  On-year CPI inflation of 4.2% as of March remains 1.2 percentage points above the medium-term target, although expected inflation in the medium term is around 3%.  A statement released after today’s meeting said that developments in the Chilean economy have pretty much conformed to the baseline scenario assumed in the last Central Bank of Chile review.  Nominal wage growth is dynamic, but employment growth is lower than desired.  Commodity prices like oil and copper rose since the previous meeting.  As in prior statements, officials note that “the annual change of the CPI is still high, and its evolution will continue to be monitored with special attention.” 

Copyright 2015, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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