The Central Bank of Chili reported this Thursday that it will maintain the referential interest rate at 11.25% for the second consecutive time and warned that inflation in the South American country remains high.
Unanimously, the board of the issuing entity kept unchanged the so-called monetary policy rate (TPM), which rose rapidly in October to reach its highest level since 2001.
“World inflation has decreased at the margin, mainly associated with lower energy prices. However, inflation persists at high levels and inflationary pressures continue to be significant. explained the agency.
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“In this context, the main central banks have continued raising their benchmark interest rates. Growth prospects for 2023 remain weak, even though they show a limited upward adjustment”he added.
In addition, the issuer assured that “the local financial market has picked up on global trends and that “bank credit continues to be contained, especially in commercial placements. This occurs in a context in which supply conditions remain restrictive and demand has continued to weaken.”
“Monetary policy has made a significant adjustment and is favoring the resolution of the imbalances present in the economy. However, inflation continues to be very high and convergence to the 3% target is still subject to risks”argument.
That is why “The Council will maintain the TPM at 11.25% until the state of the macroeconomy indicates that said process has been consolidated”, added.
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The Central Bank made a drastic rate cut to a record low of 0.5% shortly after the coronavirus pandemic broke out in Chile, in March 2020, but began to withdraw the monetary stimulus last July when the health crisis began to back.
The financial aid provided by the Chilean government to alleviate the impact of the pandemic, as well as early withdrawals from pension funds, boosted consumption considerably last year, in addition to the effects of the war in Ukraine, according to experts. .
The Chilean economy, which suffered a brutal fall of 5.8% during 2020 due to the pandemic, closed 2022 with a historic inflation that reached 12.8%, while the Central Bank estimated GDP growth for 2023 of -0.75 and -1.75% .
Source: EFE
Source: Gestion
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