Chile Leaves Rate Unchanged

In line with market consensus, Chile’s central bank has left its monetary policy rate unchanged at 0.5% as domestic demand and activity expand while unemployment and credit conditions remain stable. The central bank also says it intends to keep the rate at this level for “a prolonged period.” Standard Chartered, whose prediction was in line with consensus, believes Chile will be among the first in the region to raise rates once the economy shows growth again, but says there will not be any changes before year-end at the earliest. Bulltick, which also agreed with consensus, the central bank to keep the benchmark policy rate at 0.5% through year-end 2009.