Chile’s Central Bank increased its benchmark lending rate by 25 basis points to 3%, a two-year high. Central bankers said they expect to continue raising rates. International risks to the economy have increased and oil prices probably will impact inflation in the short term, the bank said. Economists expect rates to increase to 4% by year-end, according to a Central Bank survey.
Category: Chile
Posted inDaily Brief
Chile’s Consumer Prices Jump
Chile’s consumer prices climbed in March at the fastest pace in two years as rising oil prices boosted transport costs. Prices jumped 0.6 percent from February, the first increase in four months, raising inflation to 2.4 percent in the last 12 months. The report sparked speculation that Chile’s central bank would raise its benchmark lending rate again this week.
Posted inDaily Brief
EFE Issues Bonds
Chile’s state-owned railway company Empresa de Los Ferrocarriles del Estado (EFE) plans to issue bonds worth $102 million on April 7. The bonds will have an interest of 5.2 percent and will mature in 30 years. The debt is guaranteed by the Chilean government and is rated AAA by Fitch Ratings.
Posted inMagazine
Chilean Opportunities
After five years under the leadership of President Ricardo Lagos and his finance minister, Nicolás Eyzaguirre, Chile has never looked stronger. Investments in human capital will be needed to keep up the performance.
Posted inMagazine
Clash of the Giants
Spain’s Santander Central Hispano began merging its two Chilean banks in August 2002 to form the country’s largest bank in terms of assets, deposits, loans and equity. The new bank, […]
Posted inMagazine
Defending the Home Turf
It hasn’t been easy for home-grown investment banks to defend their turf against Wall Street’s finest. However, in Chile, which has one of Latin America’s most developed domestic bond and […]
Posted inMagazine
Latin America’s Quiet Flyer
Relatively unknown by investors outside of its home region, LanChile is growing and profitable at a time when the world’s mightiest airlines have faltered.
Posted inMagazine
CRUSADER Axel Christensen
Axel Christensen has built a reputation for himself as a crusader for shareholders rights in Chile. After graduating from Universidad Católica de Chile, he took a job as an analyst […]
Posted inMagazine
PIONEER José Piñera
Privatized pension systems are a remarkable Latin American innovation. Chile led the way in 1980, replacing a government-run pension system with privately managed pension savings accounts. José Piñera, aged just […]
Posted inMagazine
Business & Banking
Enersis Restructures In May, Chilean power company Enersis and its subsidiary Endesa-Chile successfully restructured $2.33 billion in commercial bank debt with 32 banks. Enersis is majority-owned by the Spanish power […]