SANTIAGO (Reuters) – Chile’s central bank cut its benchmark interest rate on Thursday by 75 basis points to settle at 8.25% in a unanimous decision, as the nation’s monetary authority sees inflation pressures easing.
In a statement, the central bank said its board believes that bringing inflation to its 3% target will require further cuts in the monetary policy rate.
The bank maintained its expectation that the rate of rising consumer prices should converge to the target in the second half of 2024, though core inflation will likely get there in the first half of next year.
The interest rate reduction was larger than the 50-basis-point cut estimated in a central bank poll last week by traders, who also forecast the benchmark rate would reach 5.0% within 12 months.
(Reporting by Fabian Cambero; Writing by Sarah Morland; Editing by David Alire Garcia)
