Chilean Benchmark Rate Reduced by 250 Basis Points
March 13, 2009
The Policy Board of the Central Bank of Chile cut its policy interest rate sharply for a third consecutive month, dropping such by 250 basis points to 2.25%. The rate had also been slashed by 250 basis points in February and was reduced initially in January by 100 basis points. A released statement cited rapidly falling inflation and lower expected inflation. Officials said more monetary easing may be needed but that such would be by smaller increments and occur less frequently. No continent has escaped the global recession. The 200 basis point per month reduction of the central bank rate this quarter was as aggressive as any other central bank’s easing. Chilean officials target inflation at 3% in the medium term.
Copyright 2009 Larry Greenberg.
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