Chile's monthly report issued by the Central Bank Monday forecast inflation to close 2021 with a cumulative 3.2%, with no significant changes in sight for 2022 and 2023.
Chile’s peso tumbled on Wednesday, starting the year in a volatile fashion as many had forecast. The currency dropped 2.1% to 741.66 against the dollar, bringing its decline this year to 4%.
The continuing coronavirus pandemic poses the most significant risk to Chile’s financial system as institutions’ capacity to take mitigating action diminishes, the country’s Central Bank warned in a report on Wednesday.
Chile posted a trade surplus of US$ 904 million in August, the central bank said on Monday, with a drop in levels versus a year earlier of both exports and imports for the month.
Chile’s Congress has approved a law to allow the central bank to buy bonds issued by the country’s treasury in the secondary market, potentially giving the bank added firepower to help offset fallout from the COVID-19 crisis.
Chile's central bank announced a US$ 4 billion injection to stop a currency slide that saw the peso reach historic lows on successive days this week. The peso fell to 820 to the dollar at the close Thursday, breaking the 800 Pesos milestone.
Chile’s finance minister warned on Tuesday of the “grave consequences” for the nation’s economy of three weeks of often violent unrest after the peso slid 4% to hit a historic low against the dollar. Ignacio Briones said the weakening of the peso was a “sign of worry” that he and his colleagues were watching very carefully.
Chile’s central bank slashed the benchmark interest rate by 50 basis points to 2% on Tuesday, the lowest in 9 years, citing a sputtering economy hurt by global trade tensions.
The US dollar climbed to 584 Chilean Pesos at the end of trading in the Santiago money market, signaling a slow but steady increase for several months now and with prospects of continuing according to analysts. A greenback at 600 Pesos is not far away according to market analysts.
Chile's GDP grew at its weakest pace since 2009 in the second quarter as investment waned and a previously rapid expansion in consumer spending slowed, central bank data showed. The economy grew 1.9% in the second quarter compared with a year ago, or a seasonally adjusted 0.2% compared with the first quarter.