MercoPress. South Atlantic News Agency

Chile considering expansive fiscal policy to stimulate growth

“We’re going to have a more expansive fiscal policy,” Finance Minister Felipe Larrain was quoted by the daily El Mercurio

Chile plans to roll out a more expansive fiscal policy and additional measures to stimulate economic growth to counter impacts from the U.S.-China trade war, the finance minister said in a newspaper interview published on Sunday.

Chile, the world’s No.1 copper producer, has cut its economic growth forecast for this year to 3% from 3.8%.

“We’re going to have a more expansive fiscal policy,” Finance Minister Felipe Larrain was quoted saying in El Mercurio. “We’re thinking of additional measures to stimulate the economy.”

In June, Chile’s central bank unexpectedly slashed the benchmark interest rate by 50 basis points to 2.5%, citing global trade tensions. Analysts expect another rate reduction in September.