Chile’s central bank fears effects of possible trade war

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Uncertainty surrounding US trade tariffs prompted the Central Bank of Chile to keep rates on hold this month, the central bank said in its recent policy announcement.

Despite the economy behaving in a “more dynamic than expected” way, and inflation appearing more stable, the central bank’s monetary policy committee voted to leave interest rates at 2.5%.

Year-on-year consumer price index inflation rose to 2.5% in June from 2% in May, in line with the central bank’s forecasts.

“The risks

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