Chile: Central Bank keeps policy rate unchanged
September 15, 2011
At its 15 September monetary policy meeting, the Central Bank left the policy rate unchanged at 5.25%, which was in line with market expectations. The decision marked the third consecutive month that the Bank left rates unchanged, as inflationary expectations are close to the target rate and slowing economic growth in advanced economies, as well as high volatility of international markets, allow for a yet another precautious halt in the tightening cycle. The Board reiterated its commitment to conduct monetary policy with flexibility so that projected inflation will stand at 3.0% over the policy horizon. Moreover, on 28 September, the Central Bank indicated that it is prepared to act ?aggressively? if prospects for the global economy deteriorate further. The next policy meeting is scheduled for 13 October.