November 20, 2013
A rising dollar and slowing domestic demand were factors in the Central Ban
A rising dollar and slowing domestic demand were factors in the Central Bank of Chile’s decision to cut interest rates by 25bp, to 4.5%, on Tuesday. The bank cited a “gradual” recovery in the US, and moderate growth in emerging markets, including in Chile, and a depreciating peso in its decision. The move followed a surprise rate cut — the first in over 18 months — of 25bp at the bank’s October meeting.