LatAm: Chile’s central bank cuts interest rate to 3%

The Central Bank of Chile cut the benchmark interest rate in March by 0.25 basis points to 3% in response to falling inflation and a weak economic environment. The decision was taken after the inflation rate eased to 2.7% in February, from 2.8% in January, which is at the low end of the target range of 1-5%. There was also some weakness in employment in February, with salaried employment deteriorating, despite the unemployment rate remaining stable. The central bank expects this action will provide a boost to the economy, with the market split on whether rates will remain stable for the rest of the year or see a further 0.25 basis point fall.

In the first half of 2016, 42% of consumers were concerned about their financial situation (4 or 5 out of 5), with this likely to have increased in response to the weak economic situation.

The deterioration in the Chilean economy is likely to be weighing heavily on consumers. RFi Group data has shown that in the first half of 2016, 42% of consumers were concerned about their financial situation (4 or 5 out of 5), with this likely to have increased in response to the weak economic situation.

Upcoming Events
See all upcoming events
map4
Subscribe to receive insights delivered straight to your inbox
Latest news, unbiased expert analysis and insights across banking and finance