Chile Central Bank Sees Moderate Inflation Impact From Peso

Chile’s central bank reaffirmed its plan to concentrate a large part this year’s rate cuts in the first half as the inflationary impact from a weak peso remains limited, according to the minutes of its last policy meeting.

Board members agreed that a rate reduction of either 75 or 100 basis points was most appropriate, policymakers wrote in the minutes to their April meeting, when they slowed the pace of easing with a cut of 75 basis points. While domestic demand remains weak, the smaller drop provided more leeway in the event that assumptions in their outlook don’t materialize, they wrote.