Chile Tightens Rate As Expected

Chile’s central bank has tightened its rate by 25bp, as expected by market consensus, bringing the rate to 3.50%. According to the central bank, international prices of commodities, especially food, are rising, and actual and expected inflation have increased globally. JPMorgan, which agreed with consensus, expected the tightening due to upside risks to inflation. Morgan Stanley also saw a 25bp hike, saying that inflation expectations have deteriorated since the last policy meeting. The central bank’s target for inflation is 3.0%. Annual inflation for January stood at 2.7%.