Chile: Central Bank cuts policy rate
January 12, 2012
In an effort to rekindle economic activity, Chile's Central Bank lowered the policy rate by 25 basis points to 5.00% at its 12 January monetary policy meeting, the first cut seen since July 2009. The move surprised market analysts, who had expected the policy rate to remain unchanged in January, after the higher-than-expected inflation reading recorded in December. The Bank noted that economic activity has evolved in line with the forecasts set out in its latest Monetary Policy Report. The labour market, however, is still tight, although inflation expectations remain near the target. The next policy meeting is scheduled for 14 February.