Central Banks
Chile Delivers Jumbo Interest Rate Cut as Latin America Pivots to Easing Cycle
- Median estimate in survey was for reduction of 75 basis points
- Brazil, Mexico, Peru expected to start easing in coming months
Pedestrians outside the Central Bank of Chile in Santiago, Chile, on July 28.
Photographer: Tamara Merino/BloombergThis article is for subscribers only.
Chile’s central bank slashed its key interest rate by a larger-than-expected 100 basis points, spearheading Latin America’s shift toward looser monetary policy and signaling more big reductions to come.
Board members led by Rosanna Costa voted unanimously to reduce borrowing costs to 10.25% on Friday, as expected by only four of 26 analysts in a Bloomberg survey. All others foresaw a cut of either 50 or 75 basis points.