MNI Chile CB Review – Sep 25: On Hold Amid Persistent Core CPI

Download Full Report Here

Executive Summary

• The Board of the Central Bank of Chile decided to keep the monetary policy interest rate unchanged at 4.75% in a unanimous decision, as expected by a majority of surveyed analysts.
• The statement struck a more cautious tone, with the Board noting the persistence of core inflation, although it kept the door open to additional rate cuts to a neutral range ahead.
• Analysts still see scope for further easing, albeit the next move may not come until the MPC meeting in December. Today’s quarterly monetary policy report will provide more information on the expected policy rate path.