SANTIAGO (Reuters) – Chile’s central bank cut its benchmark interest rate to 5.25% from 5.50%, following analysts’ expectations.
The bank expects to lower the rate further if the economic outlook remains as predicted.
It aims to bring inflation down to 3% within the next two years.
Analysts anticipated this 25-basis-point cut, citing reduced inflation risks, and projected the rate will fall to 4.75% in five months.
Global oil and copper prices have fluctuated, affected by Middle East tensions and China’s economic measures.
Chile is the largest producer of copper in the world.
The bank noted that current domestic activities and demand are aligned with forecasts, indicating strong mining performance and stable consumption and investment.
Recent inflation dropped to about 4% in September, leading to slightly lowered forecasts for the upcoming year.
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