Central Bank of Chile

June 17, 2016

Chile’s main central bank interest rate, which has been at 3.5% since 25-basis point hikes last October and December, was left unchanged at the June meeting.  A released statement predicted more hikes in the future in a normalizing process but indicated that lower-than-expected inflation could limit such moves.  “Partial second-quarter output and demand data reflect limited growth. Confidence indicators are still in pessimistic territory, salaried employment is growing at a slow pace, the unemployment rate is still low and nominal wages have slowed.” From June 2010 to October 2014, the interest rate was lowered to 3.0% from 5.25% in nine moves.

Copyright 2016, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.

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