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BCCH On Hold At 0.5%: Further Hawkish Tweaks

CHILE
  • BCCH On Hold at 0.5%: Further hawkish tweaks as committee eliminate 'several quarters' reference.
  • Chile Central Bank kept interest rate unchanged at 0.5%. Furthermore, no changes were made to the unconventional liquidity and credit support measures. The decisions were adopted unanimously.
  • Link to the full statement: https://www.bcentral.cl/documents/33528/133205/mpm13052021.pdf/0ce0f7a2-0356-429c-3c39-d5558a564310?t=1620943470120
  • The board were upbeat and assessed the overall international outlook is evolving positively with global growth projections continuing to strengthen.
  • However, "inflationary concerns have increased amid higher headline inflation, stronger cost pressures and significant demand stimuli, especially in the United States, which has caused some volatility in the financial markets."
  • The Board considers that the outlook for economic recovery has improved. This, together with an improved global scenario, reduces downside risks. MPR will be kept at its minimum of 0.5% for as long as it is deemed necessary for the recovery of the economy to take hold.
  • May meeting minutes - 31 May.
  • Next Monetary Policy Meeting - 8 June.

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