Chile: Central Bank keeps policy rate on hold
May 15, 2014
At its 15 May meeting, the Central Bank decided to keep the policy rate at 4.00%. The decision met market expectations. This is the second consecutive meeting at which the Bank has decided to keep its policy rate unchanged.
According to the Bank, the latest international data confirm that the outlook for the global economy is improving. In addition, commodity prices, especially copper prices, have picked up. However, local economic news confirms weakened vitality in the economy, which is in line with the scenario that the Bank introduced in its previous monetary policy meeting that took place in March. Regarding price developments, the Central Bank stated that, “the rise in inflation—associated with the peso depreciation, among other factors—is a temporary development that will continue to be monitored with special attention.”
Author: Dirina Mançellari, Senior Economist