Chile: Central Bank keeps policy rate unchanged
June 11, 2015
The Central Bank of Chile decided to keep the policy rate unchanged at 3.00% at its meeting on 11 June. The decision was in line with market expectations and marked the eighth consecutive meeting in which the Bank has decided to keep the policy rate unchanged.
Regarding the international economy, the Bank noted that the global economy is growing gradually. Long-term interest rates have increased in many economies and the U.S. dollar has appreciated globally. In addition, the Bank commented that, while the prices for some commodities have risen while others have fallen, the price of copper has decreased.
On the domestic front, the Bank pointed out that recent data is in line with its baseline projections. In addition, the Bank added that inflation will be monitored closely going forward and that the Bank expects inflation to remain at 3.0% in the medium-term. Further, nominal wage growth has fallen in annual terms and the peso has depreciated. In conclusion, the Bank emphasized that, “any future changes in the monetary policy rate will depend on the implications of domestic and external macroeconomic conditions on the inflationary outlook.”