Connect with us

Popular World News

Chile central bank doubles benchmark interest rate to 1.5% By Reuters

Japan may see inflation perk up in post-COVID era, says BOJ board member By Reuters


Chile central bank doubles benchmark interest rate to 1.5% By Reuters

© Reuters. FILE PHOTO: The emblem of Chile’s Central Bank is seen at its headquarters in Santiago, Chile March 29, 2018. REUTERS/Ivan Alvarado/File Photo

By Aislinn Laing SANTIAGO (Reuters) – Chile’s central bank said on Tuesday it would raise its benchmark interest rate to 1.5% from 0.75%, as a rapid COVID-19 vaccination program helps the world’s top producer resume economic activity and inflation ticks upward. The bank began to withdraw monetary stimulus last month, lifting the rate to 0.75% after an extended period of maintaining it at 0.5%, its lowest point since the outbreak of the pandemic and associated lockdowns. The bank’s board said in a communique it made the unanimous decision to double the interest rate out of a need “to avoid the accumulation of macroeconomic imbalances that could cause a more persistent increase in inflation.” Externally, it highlighted a sustained global economic recovery and said its move was in keeping with the actions of several other central banks in emerging economies in response to rising inflation. In Chile, the bank said, financial market volatility persisted because of the further potential for new withdrawals by Chileans from their privately held pension savings, something that central bank chief Mario Marcel has warned could fuel inflation and overheat the economy.
In July, Chile’s consumer prices rose 0.8% and rolling 12-month inflation hit 4.5%, the highest level since March 2016, surprising traders who had anticipated inflation would increase by just 0.3% last month. The increase in prices was led by jumps in the cost of transportation and especially gasoline, Chile’s statistics agency, INE, said, although prices for food and non-alcoholic beverages also rose sharply.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Continue Reading
You may also like...
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *


To Top
error: Content is protected !!