Friday, March 18, 2011

Central Bank of Chile Raises Rate 50bps to 4.00%

The Central Bank of Chile raised its benchmark monetary policy interest rate by 50 basis points to 4.00% from 3.50% in order to fight second round effects from a spike in commodity prices. Chile reported inflation of 2.7% in February, compared to the Bank's 3% inflation target, while core CPI rising 0.2% from the previous month. The Bank noted it would continue to reduce monetary stimulus, and seek to anchor inflation expectations, in the context of domestic and external economic conditions.


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