Chile hikes on higher inflation expectations

The Central Bank of Chile

The Central Bank of Chile increased its key interest rate on October 18, to tackle expectations of higher inflation, the board said in its policy statement.

The board voted unanimously to raise the policy interest rate by 25 basis points to 2.75%.

Rate-setters think capacity gaps in the Chilean economy have fallen in recent quarters and will continue the same trend in the months to come. This is expected to take both headline and core inflation near to 3% in the near future.

“In this scenario

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