Central Bank of Chile: No Changes Made

June 15, 2012

As officials did in the prior four monthly meetings, the monetary policy interest rate in Chile was left at 5.0%.  The decision was accompanied by a statement that noted

  • At-trend growth in output and demand.
  • Tight labor markets.
  • Acceptable inflation that in fact eased last month.
  • Expected inflation that’s consistent with the target.
  • Intensifying financial and economic strains in Europe.
  • But a limited effect thus far on Chile’s economy from Europe’s crisis.

The key interest rate was cut in January by 25 basis points.  That was the first ease since July 2009.  From a Great Recession low of 0.50%, the interest rate was increased by a total of 275 basis points in 2010 and another 200 bps to 5.25% during the first half of 2011.

Copyright 2012, Larry Greenberg.  All rights reserved.  No secondary distribution without express permission.



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