The Central Bank of Chile announced today, Thursday, the increase in the main interest rate by 50 basis points, indicating that the interest rates reached the highest levels of tightening the monetary policy and that it will remain so for a while in order to ensure the decline in the inflation rate to the target level.
According to the Bloomberg News Agency, the Monetary Policy Council at the Central Bank unanimously decided to raise the benchmark interest rate to 11.
25%, as predicted by the majority of analysts, whose opinions Bloomberg News Agency expected.
In their statement, the Monetary Policy Council members reaffirmed their dedication to “managing monetary policy with flexibility” in order to get inflation on a downward trajectory and to 3% of the target level.
“The council thinks that the monetary policy has achieved the maximum level of this session, which began in July 2021, and will remain at this level for the period required to ensure that the inflation mumm is dropping to the target level,” the members of Japan said.
It is noteworthy that Rosana Costa’s Central Bank increased the interest rate by 10.75 percent starting in July 2021, following the first decline in the inflation rate in 19 months in September of last year.
Chile’s interest rate will rise by 50 basis points.
About Author
