Central Bank of Chile: No Rate Change

September 13, 2012

A statement after Chilean monetary authorities left their key interest rate at 5.0% asserts that production and demand in Chile are growing at near-trend rates.  A stronger peso and slightly sub-target inflation (2.6%) are noted, too, but so are tight labor markets and some moderation of euro area financial tensions.  The present policy stance is called “neutral.”  There have been no interest rate changes in 2012.  The last change was a cut of 25 basis points last December.  In twelve steps from January 2010 to June 2011, the rate was previously returned to 5.25% from a Great Recession trough of 0.5%.

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



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