Chile: Central Bank keeps rate on hold
September 13, 2012
At its 13 September policy meeting, the Central Bank left the policy rate unchanged at 5.00%, in a move widely expected by the market. Policy makers last changed the policy rate in January, surprising the market with a 0.25 percentage-point cut. In its statement, the Bank acknowledged that, although tensions in the Eurozone have eased after the announcements of the European Central Bank, it remains a potential risk in the months to come. The Bank underlined that economic activity, while not moderating as rapidly as expected, is performing in line with its trend and the labour market remains tight, albeit the pace of employment growth is moderating. In addition, monetary authorities stated that inflation is below 3.0%, and inflation expectations remain around the Bank's target. The next policy meeting is scheduled for 18 October.