Chile Maintains Key Rate as Core CPI Proves Hard to Predict
- Policy makers left borrowing costs at 2.5 percent as forecast
- Bank has cut key rate four times in 2017, reducing it 100 bps
This article is for subscribers only.
Chile’s central bank kept borrowing costs on hold after the core inflation rate jumped, then slumped and then rose again, leaving economists and policy makers divided over the outlook for rate cuts.
Policy makers, led by bank President Mario Marcel, held the key rate at 2.5 percent Thursday, as forecast by 19 of 20 economists surveyed by Bloomberg. One analyst predicted a quarter-point reduction.