In February, Chile recorded inflation of 0.6%, exceeding expectations, with an increase of 4.5% in the last 12 months, above the Central Bank’s target range, which is between 2% and 4%. %.
In February, Chile recorded inflation of 0.6%, exceeding expectations, with an increase of 4.5% in the last 12 months, above the Central Bank’s target range, which is between 2% and 4%. %.
The president of the Central Bank of Chile, Rosanna Costa, indicated on Tuesday that a further decline is anticipated than the country interest rate. This trend is sustained as imbalances are corrected, c with stabilized inflation expectations and a price increase that is close to the established goalwhich should lead it to converge towards its neutral level.
The rate currently remains at 7.25% since the end of January, and the next monetary policy meeting is scheduled for early April.
Costa pointed out that the process of inflationary convergence had already begun in July of the previous year, when the Central Bank began a cycle of relaxation of monetary policy from 11.25% at that time, ddue to the strong pressure generated by the rapid economic recovery after the pandemic.
“Since then, we have reduced the Monetary Policy Rate by 400 basis points, in line with macroeconomic developments and inflationary convergence requirements,” he said during his speech at a conference organized by the LarrainVial brokerage. “For the foreseeable future, we expect the Monetary Policy Rate to continue its downward trend,” she added.
The words of the director of the Central Bank
In relation to the imbalances in the economy, Costa highlighted: “With stable inflation expectations and inflation closer to the target, the Monetary Policy Rate should approach its neutral level“.
In February, Chile recorded inflation of 0.6%, exceeding expectations, with an increase of 4.5% in the last 12 months, above the Central Bank’s target range, which is between 2% and 4%. %.
Furthermore, Costa mentioned that in recent months factors have emerged that could contribute to an increase in inflation, such as the depreciation of the peso and the increase in transportation and fuel costs worldwide.
“However, we find ourselves in a notably different context than in previous years. The economy does not present significant macroeconomic imbalances, inflation is considerably lower and closer to the established target, while inflation expectations are aligned with the objective 3% two years from now,” Costa concluded.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
