Chile: Central Bank stands pat in June; strikes more hawkish tone
June 9, 2021
At its 8–9 June meeting, the board of the Central Bank of Chile unanimously decided to keep the monetary policy rate unchanged at 0.50%, its lowest point since 2009, matching market analysts’ expectations.
Although both headline and core inflation are averaging around 3.5% and the Bank noted the economy was performing better than previously expected, it decided to keep rates steady to support the recovery. However, it did announce it would taper off some unconventional liquidity measures, as scheduled.
Moving forward, the Bank stuck a more hawkish tone, stating that strengthening consumer spending represents a “change for the macroeconomic scenario of the coming months, which makes it necessary to recalibrate the expansiveness of monetary policy going forward”, therefore suggesting some tightening could be on the cards.
The next monetary policy meeting is scheduled for 13–14 July.