The Central Bank of Chile on Thursday cut its key rate by a quarter point and said that it would allow banks to take advantage of the record-low 0.5% rate by offering six-month loans at this cost.
The central bank said that the economy was performing worse than had been forecast. Unemployment had risen and lending conditions remained tight. A central-bank poll, released Wednesday, showed that economists expect the economy to shrink by 1.5% and for inflation to dip to zero.
The central bank noted