Central Banks
Chile Central Bank Sticks to Its Guns, Roiling the Local Market
- Bank President Costa damps expectations for early rate cuts
- Many analysts push back forecast for policy easing to May
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Chilean swap rates are likely to rise further this week after the central bank played down the prospect of an April interest rate cut that the market had all but taken for granted.
Bank President Rosanna Costa told Bloomberg late Thursday that inflation remains “extraordinarily high” and that policymakers needed more time to ensure it was slowing to the target before starting to ease policy. Earlier that day the central bank left the key rate at a two-decade high.