Chile: Central Bank raises rate again
April 12, 2011
At its latest monetary policy meeting on 12 April, the Central Bank raised the policy rate by 50 basis points to 4.50%, following a similar move in its previous meeting. The decision was broadly expected by market analysts, as the Central Bank accelerated the pace of rate increases, in order to anchor inflation expectations. According to the Bank, while escalating oil prices have pushed up private short-run inflation expectations, economic activity and inflation remain in line with expectations. The Central Bank reiterated that it will continue to lift interest rates over the coming months, although the pace of increase will depend on inflationary expectations.