Banco Central de Chile Holds Monetary Policy Rate at 5.25%

The Banco Central de Chile maintained its monetary policy interest rate unchanged at 5.25%.  The Bank said: "Domestically, output, demand and labor market figures are progressing with strength, showing signs of moderation in line with the baseline scenario in the last Monetary Policy Report.  Annual CPI inflation indicators have hovered around 3%, while measures of core inflation remain bounded. Private inflation expectations show a decline, although some of them remain above the target."

The Chilean central bank previously raised its monetary policy interest rate by 25 basis points to 5.25% during its June meeting.  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 3.4% in June, up slightly from 3.3% in May 2011, and 3.2% in April this year.

www.CentralBankNews.info