Central Bank of Chile Raises Interest Rate 25bps to 5.25%

The Banco Central de Chile raised its monetary policy interest rate by 25 basis points to 5.25% from 5.00% previously.  The Bank said: "The Board estimates that, in the most likely scenario, additional increases in the monetary policy rate will be necessary, the timing of which will depend on the unfolding of domestic and external macroeconomic conditions. Accordingly, it will continue to use its policies with flexibility so that projected inflation stands at 3% over the policy horizon."

The Bank raised its monetary policy interest rate by 50 basis points to 5.00% in May this year.  The Bank said core inflation is holding around 3%, which is in the middle of the Bank's 2-4% inflation target.  Chile reported annual consumer price inflation of 3.3% in May 2011, up from 3.2% in April this year.

www.CentralBankNews.info