Central Bank of Chile: Board Leaves Policy Unchanged

November 15, 2017

Chile’s monetary policy rate had been reduced by 25 basis points four times during the first five months of 2017 to the current level of 2.5%. That’s higher than the present on-year CPI inflation rate of 1.9% but below the center of the medium-term 2-4% CPI target. In a statement after the latest Board meeting, policymakers observed that

Inflation will remain low in the short term. This could delay its convergence to the target within the two-year horizon. The Board will pay special attention to this risk as it could require adjusting the policy rate. At the same time, the Board reiterates its commitment to conduct monetary policy with flexibility, so that projected inflation stands at 3% over the two-year horizon.

Copyright 2017, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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