Chile Central Bank Sees Rates Trending Down, Warns of Volatility
- Policymakers publish minutes to Sept. 5 interest rate decision
- Bank board slowed easing pace with cut of 75 basis points
The Central Bank of Chile in Santiago.
Photographer: Tamara Merino/BloombergThis article is for subscribers only.
Chile’s central bank reiterated that its key interest rate will end December as low as 7.75% and fall further next year, while warning of volatility in the foreign exchange market, the minutes of its September policy meeting showed.
Policymakers considered a rate cut of 50, 75 or 100 basis points this month, before unanimously settling on an 75-point reduction to 9.5%, according to the minutes. The move was “fully consistent” with the bank’s general monetary policy stance, they wrote.