Wednesday, April 13, 2011

Chile Central Bank Lifts Rate 50bps to 4.50%

The Banco Central de Chile raised its overnight rate by 50 basis points to 4.50% from 4.00% previously. The Bank president, Jose De Gregorio, said "It can't be ruled out that activity and demand will evolve above expectations, causing them to exceed normal levels of productive capacity use in the economy and, as a result, causing inflationary pressures." Chile reported monthly inflation of 0.8% in March, the fastest since September 2009; with core inflation at 0.4% in the same period. The Bank forecasts annual inflation reaching 4.3% by the end of the year, compared to 3.4% in march, and above its inflation target of 3% with a 1 percentage point band.

www.CentralBankNews.info

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