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De Gregorio Tells La Tercera Global Economy to Impact Decision

Aug. 14 (Bloomberg) -- The Chilean central bank’s rate policy decision on Aug. 18 will be influenced by the deterioration in the global economic climate, La Tercera reported, citing comments by the bank’s President Jose De Gregorio.

The global economy will be weaker than the central bank was expecting, De Gregorio said in an interview with the Santiago-based newspaper. Slower global growth causes inflation to decelerate and reduces pressure on monetary policy, De Gregorio said, according to the newspaper.

The probability inflation will be below 4 percent this year has increased and the central bank will publish new forecasts next month, La Tercera said, citing De Gregorio.

To contact the reporter on this story: John Quigley in Lima at jquigley8@bloomberg.net

To contact the editor responsible for this story: Joshua Goodman at jgoodman19@bloomberg.net

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