Central Banking

Chile lifts rates to ten-year high

The Central Bank of Chile raised its key rate by half a point for the fourth straight month to 8.25%, its highest level since November 1998.

Annual inflation dipped slightly in August to 9.3% from a 14-year high of 9.5% in July. However, the fall still leaves inflation at more than triple the central bank's target, and a further rise was, the institution said, "necessary to ensure convergence over the policy horizon."

"The different measures of core inflation are still high, confirming that in