Chile Tightens Rate

As expected by market consensus, Chile’s central bank increased its rate by 50bp to 4.50%. It cites the increase in oil and food prices globally and a positive trend in local demand and employment as reasons for the hike. Nomura believes the bank will hike another 50bp in May and 25bp in June. Bulltick expects the bank to increase the rate to 5.50% by the end of the year to combat the rise in inflation.