Friday, February 18, 2011

Central Bank of Chile Raises Rate 25bps to 3.50%

The Banco Central de Chile (Central Bank of Chile) increased the monetary policy rate by 25 basis points to 3.50% from 3.25%. The Bank noted "that it will be necessary to continue to reduce the monetary stimulus in the coming months" as the Chilean economy continues to strengthen and as short-term inflation expectations rise. Chile recorded inflation of 2.7% in January this year; which is nearing the Bank's 3% (+/- 1%) inflation target.


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