Chilean Central Bank board members decided unanimously to increase the reference inter-bank interest rate some 25 base points to 0.75%, which represents the first rise in over two and a half years, given the improved economic prospects since the pandemic was triggered.
The Chilean central bank said on Wednesday that the economy of the world’s top copper producer would contract between 5.5% and 7.5% in 2020, taking it to the lowest levels since the Latin American debt crisis of the 1980s.
Chile’s government reached a deal with opposition lawmakers for a US$ 12 billion stimulus package over the weekend as infections hit a record and the health minister quit.
Chile's economy contracted 3.4% in October from the same month a year ago, the central bank said, posting the single biggest drop in a decade as weeks of violent protests began sending shockwaves through the Chilean economy.
The US dollar ended Thursday trading in the Chilean money exchange market at its highest since December 2008, that is 674 Pesos for the greenback. Currently and seven years ago the main reason has been the US monetary policy: the sub-prime crash in the US and fears of the debacle expanding to the rest of the world, and now growing chances of the Federal Reserve deciding on a rise of the prime rate.
Chile's economy grew 0.8% in the third quarter compared with the same period in 2013, the worst performance in five years, the Central Bank reported Tuesday. The bank also announced that the basic rate will remain unchanged at 3%.
Chile's central bank cut its forecast range for 2013 GDP growth but maintained inflation and domestic demand predictions as the effects of a slowdown hitting copper demand are moderated by consumer spending.
The Chilean central bank raised its forecast for economic growth this year to between 4.75% and 5.25% (from 4% to 5%), adding that it expects GDP to expand 4% to 5% in 2013.
Chile is planning a 2013 budget with a tendency growth of 5% and an average long term basic copper price of 3.06 dollars the pound revealed finance minister Felipe Larraín together with Rosanna Costa, head of the Budget Office during a presentation before Congress.
Chile’s central bank kept its benchmark interest rate unchanged at 5% for a fifth consecutive month as inflation in the world’s top copper producer eased and unemployment continued to decline.