Chile Names De Gregorio for Central Bank

Chile has named Jose De Gregorio as the country’s central bank president. He currently serves as the central bank’s vice president and replaces Vittorio Corbo, whose five-year term is ending. “Jose De Gregorio is a renowned economist with international and government experience seen as orthodox and fully committed to the current inflation targeting regime within a free floating FX regime,” says Goldman Sachs. “We do not expect to see any noticeable change in the way the central bank conducts monetary policy,” it adds, calling Chile’s central bank “one of the most credible in the region and one of the most transparent in the conduction of monetary policy.” Sebastian Claro is set to join the central bank board, which together with De Gregorio, Goldman sees as a market neutral to positive development. The immediate challenge is inflation.