Chile’s central bank lifted its monetary policy interest rate by 125 bps to 2.75% on its October 13 meeting, above market estimates of 2.5%, as the evolution of the macroeconomic scenario has increased the risks regarding the convergence of inflation to the 3% target within the policy horizon, Trading Economics reports on website.
The move follows a 75 bps hike in late August by the bank. The Board has decided to anticipate the withdrawal of the monetary stimulus, projecting that the policy rate will reach its neutral level sooner than foreseen in the September Report’s central scenario.
Source: tradingeconomics.com
In September, the annual variation of the CPI rose to 5.3%, outweighing expectations, while its core part accumulated an annual increase of 4.2%, close to the forecast in the September Monetary Policy Report.