Chile holds rates at 5.75%

The Central Bank of Chile's rate-setting board voted on Tuesday to keep its monetary policy interest rate at 5.75% despite CPI inflation of more than 6%.

It is the central bank's second rate hold in a row, following a 25-basis-point hike in September.

Inflation is likely to remain high for several months, the central bank said, but it was wary of raising rates again because of the expected global economic downturn.

The problems associated with the subprime crisis, the central bank said, had