SANTIAGO (Reuters) – Chile’s central bank has lowered its benchmark interest rate from 5.50% to 5.25%, a decision that matches analysts’ predictions.
The bank noted that future rate cuts may occur to reach a neutral level if the economic outlook aligns with its September report.
It aims to bring inflation down to 3% in the next two years with a flexible policy.
Analysts expected this cut, citing reduced inflation risks and predicting the rate could drop to 4.75% in five months.
The bank observed fluctuations in oil and copper prices due to Middle East conflicts and Chinese stimulus efforts. Chile is the largest copper producer globally.
Domestic economic indicators suggest a positive outlook with stable consumption and investment, alongside a strong mining sector.
Inflation forecasts have decreased as inflation fell to around 4% in September.
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