Chile Surprises with 50bp Rate Hike

Chile Surprises with 50bp Rate Hike

Bonds Corporate & Sovereign Strategy Chile Economy & Policy

Chile's central bank tightened its policy rate by 50bp to 4.00%, 25bp more than expected by the market. The bank cites uncertainty and market volatility caused by the natural disasters in Japan and the political turmoil in Arab countries. However, it points out that on the domestic front, demand and employment figures continue to evolve positively. "Clearly they are trying to pull down inflation expectations," says Nomura. Goldman Sachs had warned of a possible 50bp hike, although it predicted a

Already have an account?

Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial