Central Bank of Chile

Coronavirus Infections Climb and Negotiations Stumble

October 16, 2020

Global and U.S. Covid-19 cases rose over the last day by 434k and 65k, while the possibility of a vaccine before the U.S. election is growing more doubtful. British Prime Minister Boris Johnson said the U.K. will opt for no trade deal with the EU unless European leaders make substantial further concessions. That’s not going […] More

Equities Still Well Bid for the Most Part

September 2, 2020

Fed Governor Brainard’s call for more fiscal and monetary stimulus encouraged the risk appetite of investors overnight especially in European trading. Ten-year German bund and British gilt yields fell by 3 basis points each, and stock markets have risen by 2.3% in France and Germany, 2.2% in Italy, 1.7% in Switzerland, and 1.6% in Great […] More

Covid-19 Is in Control Rather than Being Under Control

July 16, 2020

The best laid plans of mice and men…. Governments want to reopen economic activity, but a rising curve of new coronavirus cases both around the world and in the United States is setting other imperatives. Over the past 24 hours, there were 230.3k cases world wide, including a record 71.7k in the United States, where […] More

Chile’s Secend Central Bank Rate Cut in March and Fifth Reduction Since Mid-2019

April 2, 2020

The Central Bank of Chile Board authorized a 50-basis point reduction of its policy interest rate on March 31 by unanimous vote just two weeks after an emergency meeting that cut such by 75 basis points on the 16th. In the second half of 2019, officials had also engineered cuts of 50 basis ponts in […] More

A Busy Day on Several Fronts

December 5, 2019

U.S. House of Representatives Speaker Pelosi has instructed Democratic members to draw up articles of impeachment against President Trump. Revised third-quarter GDP data for the euro area left the quarterly growth rate unchanged at 0.2%, which matches the second-quarter result. Consumption, business investment, and government spending made positive growth contributions, but net exports and inventories […] More

Chilean Central Bank Interest Rate Cut by 50 Basis Points in Unanimous Decision

September 4, 2019

The Central Bank of Chile became the latest monetary authority to cut interest rates in the face of a deteriorating global landscape. Chile’s monetary policy rate was cut by 50 basis points for the second time in three months and now becomes 2.0%, its lowest level since early September of 2010. The vote to ease […] More

NY Fed President Moves Markets Unwittingly

July 19, 2019

John Williams, President of the NY Fed and a permanent member of the FOMC, gave an academic speech asserting that it’s best for central banks to respond quickly in the face of slower economic growth. Investors took his comment as the clearest sign yet that the federal funds rate will be cut at the FOMC […] More

50 Basis Point Central Bank Rate Cut in Chile

June 11, 2019

The Central Bank of Chile last Friday unexpectedly cut its benchmark interest rate by 50 basis points to 2.50%, the lowest level since¬† a 25-basis point hike in January. The policy reversal returns the key interest rate to the low prevailing from May 2017 until October 2018. According to a officials, one should not infer […] More

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 […] More

Short-Lived Fed Stockmarket Rally

January 31, 2019

The FOMC’s tightening pause gave a big boost to U.S. stocks yesterday and was augmented by some better-than-expected corporate earnings.¬† But the DOW fell in the first hour of U.S. trading, and share prices have also weakened today in Germany France, and Australia. This contrasts with gains close to 1% in China, Hong Kong and […] More

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