Chile Raises Rate to 4.5% as Economy Surges, Prices Increase

Chilean policy makers raised the benchmark interest rate by a half-point for the second straight month today as economic growth accelerates and consumer prices threaten to exceed central bank targets this year.

The five-member policy board, led by bank President Jose De Gregorio, raised the overnight rate by a half-point to 4.5 percent, matching the forecast of 19 of 21 economists surveyed by Bloomberg. Two analysts forecast that the central bank would raise rates by a quarter-point to 4.25 percent. It was the tenth rate increase in 11 months for the South American country.