Central Bank of Chile (BCCh)
Responses to commodity shocks only have ‘small’ impact on investment, paper finds
Flexible inflation-targeting frameworks and exchange rates are ‘essential’ to limit the macroeconomic impact of commodity price volatility
Chilean central bank spells out risks to outlook
Central bank expects inflation to return to 3% target by end of 2017 according to latest forecasts; details risks from home and abroad to macroeconomic outlook
LatAm response to Fed sees two hikes
Mexico and Chile both raise rates by 25bp in the wake of the Fed decision, with currencies remaining relatively stable in the aftermath
Chile bides time on macro-prudential debate
Governor of the Central Bank of Chile says the bank will continue to ‘watch’ macro-prudential debate with view to ‘carefully studying’ different tools
Further rate hikes likely as Chile raises 25bp
Central bank lifts rate to 3.25% in first move in four years; analysts suggest the move is an effort to rein in expectations
Global indicators can boost inflation forecasts in short term, paper finds
Author uses global inflation indicators and Brent oil price to augment domestic inflation forecasts in 523 countries, finding both improve accuracy
Chile and IMF divided on potential growth
Latest staff report reveals difference in views on long-term growth of the Chilean economy, in line with earlier comments made by the central bank governor
Market expectations respond to contractionary shocks, Chilean paper argues
Monetary expectations in major eurozone economies are responsive to contractionary shocks but not expansionary ones, a paper published by the Chilean central bank argues
Chilean paper analyses ‘labour wedge’ cycles
The gap between the marginal rate of substitution (MRS) and the marginal productivity of labour (MPL) increases during recessions and is counter-cyclical in Chile, finds research
IMF projections may be ‘too pro-cyclical’ warns Vergara
Central Bank of Chile president questions whether a drop in productivity has occurred recently, suggesting potential growth was actually ‘lower than previously thought all along’
Chilean paper analyses unemployment’s impact on wages
The impact of unemployment spells on wages is high, but the volatility ‘increases much more during recessions’, research finds
Chilean paper calls on policy-makers to consider source of shocks
Policy-makers in Chile ‘have to take into account the source of the shock when evaluating possible policy options’ in response to copper price shocks, research finds
Chilean deputy analyses savings practices
With savings levels ‘clearly lower than those of most advanced countries,’ the Central Bank of Chile’s deputy governor proposes several courses of action in an economic policy paper
People: Blejer named adviser to Bank of Albania governor; Chile gets new statistics head
Mario Blejer, a former governor of Argentina’s central bank, will serve as an adviser to the new Bank of Albania governor; Central Bank of Chile names new statistics head; and more
Chilean deputy analyses financial education
Chile made good progress in financial inclusion but ‘belatedly noticed that it should be accompanied by adequate financial education’, Enrique Marshall finds in research
Chilean banks must plan for liquidity shortages
Chilean banks will adopt new liquidity management policies later this year while reporting their LCR and NSFR; Central Bank of Chile may impose further rules next year
People: Philadelphia Fed gets new directors; Paraguay central banker named finance minister
Jon Evans and Carol Johnson are appointed to the Philadelphia Fed board of directors; Central Bank of Paraguay loses member of the board of directors to the government; and more
Chilean paper analyses recent trends in long-term interest rates
Whether interest rate normalisation will be a smooth process ‘remains to be seen’ as recent developments in fixed-income markets ‘warns of enhanced risks’, research finds
Chilean study identifies ‘delicate’ relationship between prudential policy and bailouts
Liquidity requirements and prudential taxes are examples of prudential policies that may backfire, since they can increase the risk taken by banks in expectation of a bailout, research finds
Chile’s economy affected by commodities price shocks, says central bank governor
Commodity price shocks can 'be transmitted to the rest of the economy, even when countercyclical fiscal and monetary policies are in place', argues the Central Bank of Chile governor
Chile and Peru cut key rates by 25bp citing 'low dynamism'
Both central banks point to a lack of “dynamism” in their economies as they cut their key interest rates; Peruvian statement stresses the decision does not imply a sequence of rate cuts
Chile’s central bank governor laments ‘weak performance’ of economy
The central bank lowered the projection for annual GDP growth this year to 1.75–2.25%, while it now expects inflation to hit 4.1%
Chile cuts interest rates to lowest level since February 2011
Central bank may resort to additional cuts in the months ahead as growth disappoints; Number of Latam economies have performed below expectations so far this year
Chile minutes reveal commitment to hit inflation target
Above-target inflation dissuaded the Central Bank of Chile's monetary policy-makers from cutting rates despite fears over an expanding output gap