Central Bank of Chile

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

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