Chile Keeps Rate at Historic Low

As expected, Chile’s central bank has kept its monetary policy rate at its historic low of 0.5%. The board reiterates that the rate will be held at this level “for a prolonged period” and that it will aim for projected annual inflation to reach 3.0%. Annual inflation stands at minus 1.0%, the bank says. “We expect the board members to be comfortable with maintaining the current exceptional level of monetary accommodation for a prolonged period, as the Chilean CPI continues to decline although real sector dynamics seem to be doing better,” according to Chile’s Celfin Capital. Bulltick Capital expects the rate to stay at this level until the second quarter of 2010.