Central Bank of Chile

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

Central Bank of Chile

March 17, 2016

Chile’s monetary policy rate was left unchanged at 3.5%.  Last October, officials raised such by 25 basis points, the first increase of any size since June 2011, and that action was followed by another 25-basis point hike in December to 3.5%.  A statement explaining this month’s decision commits to lowering inflation from above 4% now […] More

Central Bank of Chile

February 12, 2016

Chilean monetary policy has been tightening lately as in neighboring Peru to its north, but officials have been acting less aggressively.  In contrast to Peru’s four 25-basis point moves since September including a hike announced yesterday, officials at the Central Bank of Chile have tightened just twice, also by 25 basis points each in October […] More

Central Bank of Chile Retains 3.5% Interest Rate Level

January 15, 2016

Chile’s central bank interest rate had been raised in both October and December of 2015, lifting such from 3.0% to 3.5%.  A pause this month was not a surprise, nor is the likelihood of more increases during the first half of 2016.  A statement from the Central Bank Board explains the determinant of policy ahead: […] More

A Trio of Latin American Central Bank Rate Hikes

December 22, 2015

Monetary officials in Chile, Colombia and Mexico wasted little time last week matching the FOMC’s 25-basis point interest rate hike. The Central Bank of Chile policy rate was lifted to 3.5%.  This was the second Chilean tightening of the cycle following one in mid-October.  Previously, 225 basis points of rate cuts were spaced out between […] More

Central Bank of Chile

October 16, 2015

Chile’s monetary policy rate was lifted by 25 basis points to 3.25%.  This was the first increase since June 2011.  In between, the rate had been lowered nine times by 225 basis points in all.  The first of those cuts occurred in January 2012, and the last one was done a year ago in October […] More

Central Bank of Chile Flags Coming Interest Rate Hike

September 15, 2015

The Central Bank of Chile left its benchmark interest rate, which has been at 3.0% since a cut in October 2014, unchanged but released a statement forewarning markets that policy will be tightened as soon as the next meeting:  The Board considers that the convergence of inflation to 3% over the policy horizon will call […] More

Central Bank of Chile: No Rate Change

June 11, 2015

The monetary policy interest rate, which has been 3.0% since a 25-basis point cut last October, will remain at that level, according to a released statement following this month’s meeting.  Inflation is projected to remain above target “for some months” but eventually fall to the 3.0% target.  Medium-term inflation expectations are at the target, wage […] More

Central Bank of Chile

April 16, 2015

Board members left Chile’s monetary policy rate at 3.0% as analysts expected.  Beginning in January 2012, the interest rate was cut in 25-basis point increments then, October and November 2013, February, March, July, August, September and October of 2014, but not any further during the last half year.  On-year CPI inflation of 4.2% as of […] More