Central Bank of Chile
Central Bank of Chile Cuts Rate
April 3, 2024
The Central Bank of Chile has reduced its policy interest rate by a further 75 basis points, matching analyst expectations. There has previously been cuts of 100 basis points in January and 300 bps in the second half of 2023 from a peak of 11.25% maintained from November 2022 until July 2023. By contrast during […] More
Central Bank Rate Cuts in Brazil and Chile of 50 Basis Points and 100 Basis Points
January 31, 2024
A short list of central bank interest changes during January up to the 30th had included Israel, Peru, Kazakhstan and Turkey, but four other joined the club on the final day of the month. Cuts of 50 basis points at the National Bank of Georgia and 25 bps at the Central Bank of Colombia have […] More
Dollar Strengthens Marginally Further
October 27, 2023
A statement from the Central Bank of Chile justifying a smaller interest rate reduction after today’s scheduled meeting ties a nice bow around the interconnection of the surprisingly resilient U.S. economy, the hawkish Fed stance, geopolitical danger, elevated long-term interest rates, dollar appreciation, and the vulnerability of share prices and developing country currencies. The main […] More
Chilean Interest Rate Cut
July 31, 2023
Late Friday came news of a full percentage point reduction in the Central Bank of Chile‘s key interest rate to 10.25%. The rate had been lifted from 0.5% to 4.0% in 2021 and to a 24-year high of 11.25% in seven additional incremental policy tightenings by October 2022. Chilean CPI inflation of 7.6% last month […] More
Lots of Data and a Weakening Yen on Final Day of July
July 31, 2023
The dollar rose 0.7% against the Japanese yen but mostly softened against other currencies including drops of 1.0% against the Australian dollar, 0.9% relative to the New Zealand dollar, 0.3% versus the Canadian dollar and 0.1% vis-a-vis the euro. Share prices rose 1.3% in Japan, 0.9% in South Korea, 0.8% in Kong Kong, 0.6% in […] More
Central Bank Interest Rates Back in the Spotlight
June 20, 2023
Tuesday has been a more active day in financial markets than Monday, with the return of U.S. leadership after yesterday’s Juneteenth holiday. The dollar has been mixed, dropping 0.3% against the yen and 0.1% versus the euro but advancing 1.0% relative to the Australian currency, 0.5% vis-a-vis the kiwi, 0.4% against the Turkish lira, 0.3% […] More
Service Sector Purchasing Manager Surveys and Some Central Banking Developments
April 5, 2023
The dollar overnight traded 0.6% higher against the Australian dollar, 0.5% lower versus the Japanese yen, and held steady on balance against the euro and Canadian dollar. Equities closed down 1.7% and 0.7% in Japan and Hong Kong and up 0.8% and 0.6% in India and South Korea. In Europe, the German Dax is down […] More
Some Fresh Concerns
January 27, 2023
While awaiting the monthly U.S. report on personal income, personal consumption, and the Fed’s favored PCE price deflator, investors got some disquieting price news from other countries. In Japan where consumer price data for Tokyo are reported a month earlier than national statistics, today’s January figures showed an acceleration of the total CPI to a […] More
Central Bank of Chile
September 7, 2022
The Central Bank of Chile‘s monetary policy has underwent a radical shift since mid-2021. Starting at just 0.50%, the policy interest rate was raised to 4.0% during the second half of last year and — after yesterday’s announced greater-than-expected full percentage point increase to 10.75% — a further 675 basis points so far this year. […] More
A Busy Wednesday as Central Banks Compete with Data for Market Attention
September 7, 2022
Dollar strength continues, with another 20-year high touched overnight by the weighted DXY index. At 144.98, the dollar climbed 1.4% overnight and to its highest Japanese yen value since August 1998 when the Asian debt crisis was raging. The greenback also has advanced 0.8% versus sterling and 0.3% vis-a-vis the Canadian, Australian and New Zealand […] More
