Chile: Central Bank keeps policy rate on hold
October 13, 2011
At its 13 October monetary policy meeting, the Central Bank left the policy rate unchanged at 5.25%, which was in line with market expectations. The decision marked the fourth consecutive month that the Bank left rates unchanged as inflationary expectations are close to the target rate and slowing economic growth in advanced economies, as well as high volatility of international markets, provide room for a further pause in the tightening cycle. In addition, the Bank acknowledged that the latest activity and consumption data point to a moderation in the third quarter as production slows more than previously expected. The Board reiterated its commitment to a flexible monetary policy, so that projected inflation stands at 3.0% over the policy horizon. The next policy meeting is scheduled for 15 November.