SANTIAGO (Reuters) -Chile’s central bank has cut its benchmark interest rate to 5.25% from 5.50% in a unanimous decision, as expected by analysts.
The bank plans to lower rates further if the economic conditions align with its September report, aiming for a neutral rate.
It remains committed to a flexible policy to reduce inflation to 3% within two years.
Analysts predicted this rate cut due to reduced inflation risks, forecasting the rate could drop to 4.75% in five months.
The bank noted fluctuations in global oil and copper prices, influenced by the Middle East conflict and Chinese economic stimulus. Chile is the top copper producer globally.
Domestic economic indicators are on track, showing strong mining performance and stable consumption and investment.
Inflation forecasts have decreased, with inflation at about 4% in September.
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