Chile: Central Bank keeps policy rate at 3.00%
February 12, 2015
At its meeting on 12 February, the Central Bank of Chile decided to keep the policy rate at 3.00%. The decision was broadly in line with met market expectations. This is the fourth consecutive meeting in which the Bank has kept the policy rate unchanged following two meetings in which it cut its benchmark interest rate in an effort to support economic growth.
On the international front, the Bank commented that the main news since the previous meeting was the announcement of a quantitative easing program in the Eurozone. The Central Bank added that, with a few exceptions, the prices of commodities rose and copper has traded at a fairly stable price.
On the domestic front, output and demand indicators show that the economy is growing in line with the Bank’s projections. The unemployment rate fell and nominal wages remain dynamic. In regard to price developments, the Bank said that January’s inflation was unexpectedly high and acknowledged that, “in the most likely scenario, annual inflation is expected to remain for some months above the upper bound of the tolerance range.”
Author: Dirina Mançellari, Senior Economist