MNI Chile CB Review -Sep 26: Caution Prevails Amid Uncertainty

Hidden PDF

Executive Summary

• The Board of the Central Bank of Chile left the monetary policy interest rate unchanged at 4.50%, as expected, in a unanimous decision.
• In another cautious statement, the Board emphasised the heightened uncertainties over the outlook, which it reiterated requires it to maintain its meeting-by-meeting approach and assess alternative scenarios that could require a change in monetary policy.
• While inflation has rebounded, inflation expectations remain stable and economic growth has been weaker than expected. Against this backdrop, many analysts still expect the BCCh to remain on hold for a prolonged period ahead.