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Chile Holds Key Rate At 5%

Capital Market/ 09:47 , Sep 14, 2012

Chile's central bank late Thursday held the country's key interest rate at 5%, marking the eighth consecutive decision by monetary policy makers at Banco Central de Chile to leave the rate steady. The decision had been widely expected as the Andean nation considers slowing global growth alongside strength in domestic demand. Policy makers in a statement said there is still uncertainty about the performance of European economies, and a resurgence of tensions in coming months cannot be ruled out. Policy makers in their statement also noted appreciation in Chile's currency, and said year-over-year consumer-price inflation and core-inflation measures remain below 3%. Inflation expectations over the policy horizon remain around the target, said the central bank.

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