Chile keeps policy rate at 3% despite higher-than-expected inflation

By Angela McDaniels

Tacoma, Wash., March 20 – The board of the Central Bank of Chile decided to keep the monetary policy interest rate at 3% at its monthly monetary policy meeting, according to a press release from the bank.

As in January, February’s inflation exceeded expectations, the board said, and core inflation remains high. In what the board called the most likely scenario, annual inflation is forecast to remain above the tolerance range for some months. Its medium-term inflation expectations remain around 3%.

The unemployment rate increased slightly and nominal wages remained “dynamic” in February, according to the press release. The board said output and demand indicators point at growth rates in line with those included in the December Monetary Policy Report.

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