Chile Tightens Policy Rate

In line with market expectations, Chile’s central bank has tightened its monetary policy rate by 50bp, increasing it to 2.00%. The bank says that the domestic demand shows continued improvement, while unemployment has decreased. “We maintain our call for the benchmark policy rate to end the year at 2.25% for a total of 175bp in overall tightening for the year,” says Bulltick. Barclays meanwhile, believes the rate will reach 3.50% in Q4.