By Central Bank News
The Central Bank of Chile kept its benchmark interest rate unchanged at 5.0 percent for the fifth month running, despite weaker global growth and growing risk aversion in global financial markets.
“Internationally, the financial and fiscal problems in the Eurozone continue to intensify, and uncertainty about their resolution has increased,” Banco Central de Chile said following a monthly meeting of its board.
“Economic indicators in the United States, China and other emerging economies have been weaker than forecast by market consensus,” the bank said, noting that commodity prices, including copper, oil and foodstuffs, have continued falling.
But domestic output and demand is expanding and the labour market remains tight. Inflation expectations remain close to the bank’s target, it said.