The Banco Central de Chile kept its monetary policy interest rate steady at 5.25%. The Bank noted: “Domestically, output and demand show signs of moderation. In the case of output, the slowdown is more pronounced than was assumed in the Monetary Policy Report’s baseline scenario; the opposite occurs with demand. Labor market conditions remain tight. CPI inflation rates have hovered around 3% y-o-y, while core inflation measures remain contained. Inflation expectations are close to the target. “
Chile’s central bank previously also kept the monetary policy interest rate unchanged at 5.25% at its September meeting. The Bank last raised its monetary policy interest rate by 25 basis points to 5.25% at its June meeting this year. Chile reported annual consumer price inflation of 3.3% in September, compared to 3.2% in August, 2.9% in July, 3.4% in June, 3.3% in May and 3.2% in April this year; within the Bank’s inflation target of 2-4%.
