Central Bank of Chile

Central Bank of Chile Cuts Interest Rate to 3.0%

March 17, 2017

The Chilean monetary policy rate had been 3.5% for 13 months until a 25-basis point reduction in January, and now a second such cut has been engineered and statement released suggesting more easing may lie ahead: “if the recent trends of the economic scenario persist, and so do their implications on the medium-term inflation outlook, […] More

Central Bank of Chile

February 14, 2017

A 25-basis point cut of Chile’s central bank interest rate to 3.25% had been the first reduction since October 2014. In between there were two 25-basis point increases in the final quarter of 2015. At its February meeting today, the central bank Board elected not to reduce the rate further this month but signaled a […] More

Central Bank of Chile Cuts Interest Rate

January 19, 2017

A 25-basis point reduction to 3.25% was the first change in Chile’s monetary policy rate since a 25-basis point hike way back in December 2015. The move follows an unexpected deceleration of CPI inflation to 2.7% last month from 2.9% in November. Chilean growth has been soft, and that’s no longer confined to the resource […] More

Central Bank of Chile

December 13, 2016

The central bank board left its key rate unchanged at 3.5% but signaled that “if the recent trends of the economic scenario persist, and so do their implications on the medium-term inflation outlook, it will be necessary to boost the monetary impulse.” According to a released statement, the peso has appreciated, growth is not expected […] More

Central Bank of Chile

October 19, 2016

Chile’s monetary policy rate was left unchanged at 3.5%, its level since hikes of 25 basis points implemented in September and December of 2015. A released statement observes that inflation has recently fallen faster than anticipated and that interest rates elsewhere are low. Growth was sluggish last quarter in Chilean output and demand, and the […] More

Central Bank of Chile

September 15, 2016

Chile’s central bank Board left its policy interest rate at 3.5%, the level since a 25-basis point increase in December 2015. That was the second of two hikes, the first coming a year ago in September 2015. Economic data released since the Board last rate announcement on August 11 have not surprised officials, according to […] More

Central Bank of Chile

August 12, 2016

The notable element in the latest statement from Chilean monetary authorities isn’t the announced decision to keep its interest rate benchmark at 3.5% or the reasons given for doing so but rather that language found in earlier such statements that explicitly projected more rate normalization (code for rate hikes) was deleted. Instead, officials just pledge […] More

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 […] More

Central Bank of Chile

May 20, 2016

Chile’s May monetary policy meeting on May 17 resulted in no change to the policy interest rate, which has been at 3.5% since a 25-basis point increase last December, but the statement released by officials reaffirmed that more rate normalization will become necessary eventually.  December’s tightening was the second of the cycle following an initial […] More

Central Bank of Chile

April 12, 2016

There were two 25-basis point Chilean interest rate hikes in the final quarter of 2015.  They were the first tightenings in several years, but there has been no further change in the 3.5% range since December.  A statement released after the latest policy meeting kept that level but promises further rate normalization.  Inflation of 4.5% […] More

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