Rate stays at 5 percent, which came as no surprise to economists, thanks to ‘dynamic’ domestic market and improved external markets, but cut could be on the horizon.
The Central Bank held its monthly monetary policy meeting Tuesday, announcing Chile’s interest rate will remain at 5 percent, where it has been since a surprise cut in January 2012.
The Central Bank meeting monthly adjourned with the interest rate remaining unchanged. Photo by Evan Lang / The Santiago Times
“Externally, global financial conditions became somewhat more favorable during the last month, including lower credit risk, both sovereign and corporate,” the official report read. “On the local level, incoming information shows a sharper slowdown for output than for demand. Consumption remains dynamic, although confidence surveys foresee a reduced impulse from this variable going forward.”