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Central Bank of Chile lowered the rate thanks to the reduction in inflation and the pace of growth

Central Bank of Chile lowered the rate thanks to the reduction in inflation and the pace of growth

He brought monetary policy to 6%. This is the seventh consecutive reduction made by the Council of the Central Bank.

The crux of the matter

He Central Bank of Chile this Thursday again reduced the monetary policy rate (TPM) in 0.5 percentage points to reach 6%, due to the inflation stabilization and to good pace of economic growth.

This is the seventh consecutive loss carried out by the Council of the Central Bankin this case defined unanimously, in a consumer price reduction scenario and one greater growth prospect thanks to better performance in mining and tradeas reported by the organization in a statement.

Economic stabilization of Chile

In the first quarter of the year, the Gross Domestic Product (GDP) Chile grew 2.3% compared to the same period in 2023. For its part, the inflation year-on-year was at 4%far from 12.8% of 2022, the largest in three decades.

For all of 2024, the Central Bank of Chile projects a GDP growth in a range of 2% to 3% and that the inflation ends at 3.8%.

In this stage, The Central Bank estimated on Thursday that it foresees that the MPR “will continue to reduce” during the rest of the year.

He Chilean BC In June of last year, a reduction in the governing rate of the economy began, reaching a record of 11.5%. Then, he applied a cut of one percentage point, the largest in 14 years.

Source: Ambito

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