Chile: Central Bank keeps policy rate on hold
November 15, 2011
At its 15 November 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 fifth consecutive month that the Bank left rates unchanged as inflationary expectations are close to the target rate and slowing economic growth in advanced economies provide room for a further pause in the tightening cycle. In addition, the Bank acknowledged that the persistence of problems in advanced economies could shape a more adverse external scenario than the one assumed in the Report's baseline scenario, with potential consequences over growth and inflation in Chile, as well as for the orientation of monetary policy. The statement was similar to the statement issued in October but the likelihood of a rate cut increases as the European debt crisis intensifies. The next policy meeting is scheduled for 13 December.