Chile: Central Bank keeps rates unchanged in September
September 12, 2013
At its 12 September meeting, the Central Bank decided to maintain the policy rate unchanged at 5.00%, a decision that was expected by the market. The last policy rate change took place in January 2012, when the Bank cut the rate of 25 basis points.
According to the Bank, the economy slowed down amid a deceleration in output and demand. Meanwhile, headline inflation continues to be within the Bank's tolerance range, while core inflation hovers around 1.0% annually. An adjustment in the monetary policy interest rate could occur in the coming months as a result of the latest macroeconomic trends. The Bank also added that any future change in the rate, "will depend on the implications of domestic and external macroeconomic conditions on the inflationary outlook." The next policy meeting is scheduled for 17 October.
LatinFocus Consensus Forecast panelists see the policy rate at 5.01% by the end of the year. Panelists expect the policy rate to end next year at 5.06%.
Author: Dirina Mançellari, Senior Economist