Chile: Central Bank keeps rates on hold
June 13, 2013
At its 13 June meeting, the Central Bank left the policy rate unchanged at 5.00%, a decision that was widely expected by the market. The last policy change took place in January 2012, with a cut of 25 basis points. In its statement, the Bank noted that international financial conditions have tightened, in particular with regards to emerging economies, as the market fears a tapering of quantitative easing by the United States. The Central Bank acknowledged that the Eurozone remains in recession, growth prospects for China have deteriorated but a recovery is expected in the U.S. On the domestic front, monetary authorities stated that the economy continues to show decelerating output and demand, although private consumption has remained strong. Regarding the inflation outlook, the board sees headline and core inflation remaining in line with its 3.0% target in the policy horizon. The next policy meeting is scheduled for 11 July. LatinFocus Consensus Forecast panellists see the policy rate at 5.01% by the end of the year. Next year, panellists expect the policy rate to end the year at 5.06%.