Chile Raises Benchmark Interest Rate

Chile’s Central Bank has raised the benchmark lending rate a quarter of a percentage point, from 4.75% to 5%, in line with market expectations. Chile’s stronger economic growth and annual inflation of around 4% has prompted the Bank to push up the overnight lending rate to its highest level since March 2002. Last month the Bank held the rate unchanged, offering some hope for local exporters who have been hit by the strength of the peso against the US dollar.