Chilean Monetary Policy

June 15, 2011

The Central Bank of Chile late Tuesday implemented the twelfth rate hike of the current tightening cycle but, as expected, cut the size of the move to 25 basis points from increases of 50 bps undertaken in March, April, and May.  The 5.25% new overnight rate level lies 475 basis points above the 0.5% cyclical […] More

50-Basis Point Hike of Chilean Monetary Policy Interest Rate

May 12, 2011

Few central bank interest rates have traced a U-shaped pattern quite as well as Chile’s.  Seven consecutive monthly cuts from January through July of 2009 slashed the rate by 775 basis points to a cyclical low of 0.5% where it remained for eleven months.  Beginning in June 2010, monetary officials have lifted their interest rate […] More

Another Chilean Monetary Tightening

April 12, 2011

The Central Bank of Chile’s overnight interest rate has been raised by an as-expected 50 basis points to 4.5%.  There has been an increase at ten of the last eleven monthly meetings of the Policy Board.  The exception was in January.  The last two increases have been by 50 basis points, as were the first […] More

Central Bank of Chile Tightens… Key Interest Rate Now 4.0%

March 18, 2011

The Central Bank of Chile raised its key overnight interest rate by 50 basis points, surprising analysts who’d expected an increase of 25 basis points.  The central bank has been normalizing policy since mid-June, lifting its key rate from a starting point of 0.5% to 2.5% by September via four hikes of 50 basis points […] More

Rate Raising Comes to Colombia Finally

February 25, 2011

The Colombian interest rate was raised today by 25 basis points in the first advance since July 2008.  The benchmark central bank rate had been 3.0% since a 50-basis point cut on April 30, 2010 that culminated and 8-step, 700-basis point reduction beginning in December 2008.  600 bps of that drop was done in 2009.  […] More

Another Rate Increase in Chile

December 16, 2010

The Central Bank of Chile boosted its overnight rate after every monthly policy meeting since June.  With another 25 basis points announced today, the key rate has climbed from 0.5%, the level from July 2009 until mid-June, to 3.25%, but the new rate remains 500 basis points below the last cyclical peak of 8.25% at […] More

A Sixth Consecutive Chilean Rate Hike

November 17, 2010

The Central Bank of Chile had slashed its policy interest rate during the first seven months of 2009 by 775 basis points from 8.25% to 0.5%, but about a third of that stimulus from last year has now been reversed following Tuesday’s announced increase of 25 basis points to 3.0%. Starting in June, the benchmark […] More

25-Basis Point Rate Hike in Chile

October 14, 2010

The Central Bank of Chile met market expectations, raising its benchmark interest rate by 25 basis points to 2.75%.  A statement from officials noted that inflation and expected inflation had eased and, related to this as a causal agent, the peso continues to appreciate against the dollar.  Growth was brisk in the second quarter at […] More

An As-Expected 50-Basis Point Central Bank Rate Hike in Chile

September 16, 2010

The Policy Board of the Central Bank of Chile meets each month and raised its policy rate by 50 basis points for a fourth straight time.  A statement from officials described a need to withdraw the significant stimulus provided during Chile’s recession.  From a peak of 8.25%, the rate plunged 600 basis points in the […] More

Mexico and Chile Monetary Policy Reviews

July 17, 2010

The Mexican overnight interbank funding rate, 4.5% since July 2009, was left unchanged as expected on Friday.  The rate was reduced in total by 375 basis points last year.  The Mexican economy is recovering, but on-year first-quarter growth of 4.3% was just half as much as in Brazil and five-eighths as much as in Argentina.  […] More