Chile: Central Bank maintains neutral stance
February 14, 2013
At its 14 February policy meeting, the Central Bank left the policy rate unchanged at 5.00%, a decision that was in line with expectations amid stronger-than-expected growth and low inflation. Policy makers last changed the policy rate in January 2012, with a surprise cut of 0.25 percentage points. In its statement, the Bank noted that financial conditions have stabilized but risks from the Eurozone debt crisis remain high. In addition, the Bank underlined a pick-up in fuel and metal prices. On the domestic front, demand and output exceeded forecasts from the last Monetary Policy Report, while the labour market remains tight. Regarding the inflation outlook, the board sees headline and core inflation contained in line with the Bank's target in the policy horizon. The next policy meeting is scheduled for 14 March.