Chile's central bank previously kept the monetary policy interest rate unchanged at 5.25% at its December meeting. The Bank last raised its monetary policy interest rate by 25 basis points to 5.25% at its June meeting last year. Chile reported annual consumer price inflation of 3.7% in October, compared to 3.3% in September, 3.2% in August, 2.9% in July, 3.4% in June, 3.3% in May and 3.2% in April last year; within the Bank's inflation target of 2-4%.
The Chilean economy grew 8.4% in the first half of 2011, driven by strong domestic demand; full year GDP growth is expected around 6.5%. The Chilean Peso (CLP) has weakened about 2% against the US dollar over the past year, while the USDCLP exchange rate last traded around 501.