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Economics

Chile Reloads Tightening Cycle With a Bigger-Than-Expected Hike

  • Central bank raised policy rate by 125 basis points to 8.25%
  • Policy makers described domestic consumption as resilient
Updated on

Chile’s central bank raised its key interest rate more than expected by economists and left the door open to additional tightening as policy makers battle a slew of local and global inflation drivers.

The bank board, led by Rosanna Costa, lifted the overnight rate to 8.25% late on Thursday, more than forecast by all but one analyst in a Bloomberg survey that had a 8% median estimate. In a statement, policy makers wrote that a combination of rising global food and energy prices, supply chain bottlenecks and a weaker currency have sent inflation soaring above projections.