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Central Bank Review

CHILE

As expected, BCCh kept their overnight target rate at the 0.5% 'technical minimum' in a unanimous vote. Additionally:

  • Chile central bank agrees to extend FCIC program by 6 months
  • Chile central bank agrees to expand FCIC program by $10b

The MPC had previously mentioned they may take this action on the funding-for-lending program. They cited the measure "responds to the current financial needs of companies, complementing the recently approved Fogape-Reactiva program, especially in its refinancing line."


Surprise readings on inflation and activity indicators, as well as the second pension fund withdrawal, prompted no alterations in the committee's economic outlook.


Worth noting, there was no mention in the statement on the reserves accumulation program. This reinforces their communication following the announcement that the program will be offset/sterilised and has no monetary role.

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