{"id":94222,"date":"2016-08-11T18:54:11","date_gmt":"2016-08-11T22:54:11","guid":{"rendered":"http:\/\/countingpips.com\/?p=94222"},"modified":"2016-08-11T18:54:11","modified_gmt":"2016-08-11T22:54:11","slug":"chile-holds-rate-and-drops-tightening-bias","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/08\/chile-holds-rate-and-drops-tightening-bias\/","title":{"rendered":"Chile holds rate and drops tightening bias"},"content":{"rendered":"
August 11, 2016<\/div>
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By CentralBankNews.info<\/u><\/a>
\n    Chile’s central bank left its monetary policy rate steady at 3.50 percent but dropped its tightening bias and adopted a neutral guidance, saying “any future changes in the monetary policy rate will depend on the implications of domestic and external macroeconomic conditions on the inflationary outlook.”
    The Central Bank of Chile had kept a tightening bias since its last rate hike in December 2015 as inflation slowly eased but still remained above its target range of 2-4 percent.
    But consumer price inflation in July dropped to 4.0 percent from 4.2 percent in the previous three months, allowing the central bank to shift its monetary policy stance.
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    The Central Bank of Chile issued the following statement:
   
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“In its monthly monetary policy meeting, the Board of the Central Bank of Chile decided to keep the monetary policy interest rate at 3.5%. <\/span>

<\/span> Internationally, monetary and financial conditions are still expansionary and long-term interest rates remain low. It is worth noting the increased appetite for risk in global <\/span>financial markets, particularly for emerging economies\u2019 assets. This has re<\/span>sulted in a drop in their sovereign premia, an increase in their stock markets and an appreciation of their currencies. On aggregate, world growth prospects are generally unchanged. Most commodity prices posted limited declines. <\/span>

<\/span> On the domestic front, although July<\/span>\u2019s <\/span>inflation was somewhat higher than expected, the annual CPI variation returned to the tolerance range. Expected inflation two years ahead remains at 3%. The evolution of these variables will continue to be monitored with special attention. Second-quarter output and demand data showed limited growth. Confidence indicators are still in pessimistic territory. The labor market continues to reflect a gradual deterioration, but the unemployment rate has remained stable. The peso has appreciated. <\/span>

<\/span> The Board reiterates its commitment to conduct monetary policy with flexibility, so that projected inflation stands at 3% over the policy horizon. Any future changes in the monetary policy rate will depend on the implications of domestic and external macroeconomic conditions on the inflationary outlook. “<\/span>

<\/span>    <\/span>www.CentralBankNews.info<\/span><\/a>

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<\/p>\n","protected":false},"excerpt":{"rendered":"

By CentralBankNews.info     Chile’s central bank left its monetary policy rate steady at 3.50 percent but dropped its tightening bias and adopted a neutral guidance, saying “any future changes in the monetary policy rate will depend on the implications of domestic and external macroeconomic conditions on the inflationary outlook.”    The Central Bank of […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-94222","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/94222","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=94222"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/94222\/revisions"}],"predecessor-version":[{"id":94223,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/94222\/revisions\/94223"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=94222"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=94222"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=94222"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}