Friday, May 13, 2011

Chile Central Bank Increases Rate 50bps to 5.00%

The Banco Central de Chile increased its monetary policy interest rate by 50 basis points to 5.00% from 4.50% previously.  The Bank said: "The Board estimates that additional increases in the monetary policy rate will be necessary, the timing and the magnitude depending on the unfolding of domestic and external macroeconomic conditions. Accordingly, it will continue to use its policies with flexibility so that projected inflation stands at 3% over the policy horizon."  The Bank said core inflation is holding around 3%, which is in the middle of the Bank's 2-4% inflation target.


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