Chile: Central Bank keeps the policy rate on hold
December 12, 2013
At its 12 December meeting, the Central Bank decided to maintain the policy rate at 4.50%. The decision was broadly in line with market expectations. This is the first meeting in which the Bank decided to keep the policy rate unchanged following two consecutive meetings in which the policy rate was cut by 25 basis points each time.
According to the Bank, the economy has shown moderate growth dynamics in the past few months, which is primarily due to low domestic spending. Regarding price developments, the Bank added that, "recent inflation indicators, as well as private expectations, are consistent with inflation converging to the target within the monetary policy horizon."
LatinFocus Consensus Forecast panelists see the policy rate at 4.50% by the end of the year. Panelists expect the policy rate to end next year at 4.06%.
Author: Dirina Mançellari, Senior Economist