Central Bank of Chile

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

Central Bank of Chile Kept Interest Rate at 3.0%

March 20, 2015

Eight 25-basis point reductions of Chile’s policy interest rate were made between January 2012 and September 2014, including the last six since October 2013, but policy has not changed subsequently.  The problem is above-target inflation.  In a statement very similar to the previous one issued five weeks ago, Chilean central bank officials had this to […] More

Central Bank of Chile

February 12, 2015

Chile’s central bank interest rate was left at 3.0% after this month’s policy meeting.  It was cut eight times between January 2012 and September 2014, falling from 5.0% to the current level.  But inflation lately has been simply to high in Chile for monetary officials to proceed further.  January’s 4.5% on-year pace surpassed private-sector forecasts […] More

Central Bank of Chile Stays in a Wait and See Mode

January 15, 2015

Following eight 25-basis point policy interest rate cuts between October 2013 and October 2014, the Board of the Central Bank of Chile adopted a wait and see posture.  Inflation of 4.6% is falling amid weak production and demand but remains above the 2-4% target range.  A statement released today after the January Board meeting noted […] More

Central Bank of Chile Interest Not Changed

December 11, 2014

Eight straight monetary policy interest rate cuts were implemented between January 2012 and September 2014, including five this year, but central bank officials have recently paid a little more attention to inflation, which is above the 2-4% target and likely to stay so “still for some months.”  According to statement today, “the evolution of prices […] More

Central Bank of Chile: Easing on Hold

November 19, 2014

Chilean officials are trying to strike a policy balance that maintains the credibility of the 2-4% inflation target but also supports growth, which is near 2% and at a five-year low.  Monetary officials previously had implemented eight 25-basis point rate cuts in January 2012, October and November 2013, and February, March, July, August and September […] More

Another Chilean Interest Rate Cut

October 17, 2014

Officials at the Central Bank of Chile announced late Thursday the eighth interest rate cut in a year.  The key rate was reduced previously in October and November of 2013 and February, March, July, August, and September of this year.  All these cuts have been by 25 basis points, and the benchmark is now 3.0% […] More

Central Bank of Chile

August 14, 2014

Chile’s monetary policy interest rate was sliced by 25 basis points for the seventh time since last October and in the second consecutive month.  The rate is now 3.5%.   A released statement from central bank officials notes that growth in output and demand have slowed faster than anticipated and projects a decline in inflation: […] More

Central Bank of Chile

July 16, 2014

After slicing Chile’s monetary policy rate on July 15 by another 25 basis points to 3.75%, the central bank Board released a statement that observed a continuing slowdown of growth that’s already sub-trend.  Even though inflation of 4.3% exceeds target by more than a percentage point, it’s receding, and officials predict “that inflation will stay […] More