Central Bank of Chile Begins to Normalize Interest Rates

June 16, 2010

The key overnight Central Bank of Chile interest rate was doubled to 1.0% on Tuesday.  The 50-basis point increase was greater than analysts were assuming.  An increase this month had been strongly implied after policymakers met in May.  They had slashed their rate by 600 basis points in the first quarter of 2009, 150 basis […] More

Chilean Central Bank Signals Rate Hike Very Near

May 13, 2010

The Central Bank of Chile’s monetary policy interest rate has been only 0.5% since July 2009.  It fell by 775 basis points via seven consecutive reductions after meetings between January and July of last year.  After leaving the rate unchanged on Thursday, officials released a statement that asserted “the Board considers the time to begin […] More

Chilean Benchmark Interest Rate of 0.5% Not to Be Kept Much Longer

April 15, 2010

The Central Bank of Chile slashed the key Chilean interest rate from 8.25% at end-2008 to 0.5% seven months later and is now preparing markets for a fairly aggressive rise in rates later this year.  Policy remains on hold for now, pending a better assessment of the impact of the devastating earthquake that hit near […] More

Chilean Monetary Policy Statement Stresses Uncertain Outlook

March 18, 2010

The massive earthquake and tsunami on February 27 was a game changer.  An increase of the 0.5% monetary policy rate this month had never seemed likely, but an increase during 2Q10 had looked probable since Chilean growth was developing more quickly than anticipated.  Real GDP in 4Q09 had been 2.1% greater than a year earlier […] More

Chilean Monetary Policy Rate Left at 0.5%

February 11, 2010

Officials at the Central Bank of Chile made no change in their credit policy stance even thought a 0.5% monthly rise of consumer prices in January exceeded expectations.  The benchmark interest rate has been at 0.5% since a cut of 25 basis points last July 9th, and today’s statement reaffirmed that a rate increase is […] More

Chilean Monetary Policy Interest Rate Left at 0.50% as Expected

January 14, 2010

For the sixth month in a row, the Central Bank of Chile left its interest rate at 0.5%.  From a peak level of 8.25% over the final four months of 2008, monetary officials had previously cut the rate last year by 100 basis points in January, 250 bps each in February and March, 50 bps […] More