Chilean Interest Rate Cut – Currency Thoughts
Chilean Interest Rate Cut
September 4, 2024
The Central Bank of Chile announced its ninth interest rate reduction since July 2023. The latest cut of 25 basis points to 5.5% follows 250 basis points of easing during the first half of this year preceded by 300 basis points of cuts in the second half of 2023. Continuing rate reductions have been made in spite of an acceleration of CPI inflation from 3.7% last March to an 8-month high of 4.6% in July and have been made because major central banks like the Fed and ECB have shifted to more dovish rhetoric and in response to a drop in Chilean GDP and the Chilean peso’s resilience.
Copyright 2024, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
Tags: Central Bank of Chile
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