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.
