Central Bank of Chile Lifts Policy Rate

January 31, 2019

The Central Bank of Chile engineered a second 25-basis point in its monetary policy rate to 3.0%. The initial rate hike of similar size had been done in October. The rate’s last cyclical low of 2.5% had prevailed from May 2017 through October 2018. Chilean CPI inflation now of 2.6% is a half percentage point lower than when this mild tightening began. This second hike was decided unanimously by policymakers, who “considered that the evolution of macroeconomic conditions continues to warrant a gradual withdrawal of the monetary stimulus,” but they also intend to “proceed with this process gradually and cautiously.”

Copyright 2019, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

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