Central Bank of Chile Rate Hike

July 14, 2022

Chilean monetary officials had cut their interest rate twice in March 2020 by a total of 125 basis points to 0.50% but began to raise the rate in July 2021 and did so in four moves by a total of 350 basis points by December. Yesterday’s unanimously decided increase to 9.75% from 9.0% was the fifth hike of 2022 and exceeded analyst expectations of a half percentage point move. Chilean inflation of  12.5% is at a 28-year high and still well above the new central bank interest rate level. A released statement asserts,  “the Board estimates that new increases in the monetary policy rate will be necessary to ensure the convergence of inflation to 3% in two years.”

Copyright 2022, Larry Greenberg. All rights reserved. No secondary distribution without express permission.

Tags:

ShareThis

This entry was posted on Thursday, July 14th, 2022 at 10:29 am and is filed under Central Bank Watch. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

Comments are closed.

css.php