Central Banks
Chile Delivers Hawkish Interest Rate Cut That Raises Odds of a Pause to Easing
- Reduction to 5% expected by 19 of 22 economists in survey
- Policymakers warn of weaker peso, electricity tariff hikes
This article is for subscribers only.
Chile’s central bank cut its key interest rate by a quarter point for the third meeting and delivered a stern warning on short-term inflation challenges, raising the odds of a coming pause to its easing cycle.
Policymakers led by Rosanna Costa voted unanimously to lower borrowing costs to 5% late Tuesday, as expected by all analysts in a Bloomberg survey except three who forecast no change. Rates have tumbled from 11.25% in mid-2023.