Chile Tightens As Expected

As expected, Chile’s central bank tightened its rate by 25bp, bringing it to 3.00%. The bank says the local economy is enjoying robust growth while inflation is lower than expected and the local currency has remained stable. Celfin expects another 25bp increase at December’s meeting, bringing the rate to 3.25% by the end of the year. Morgan Stanley agrees, adding that it expects the rate to end 2011 at 5.50%