Chilean central bank starts easing cycle with 100bp rate cut

Board says inflation is falling faster than expected and signals further reductions

Central Bank of Chile
Photo: Central Bank of Chile/Flickr

The Central Bank of Chile’s board voted unanimously to cut the monetary policy rate by 100 basis points on July 28, taking it to 10.25%.

The move made Chile the first major Latin American central bank to ease policy in this cycle, following similar decisions by Costa Rica and Uruguay. Some analysts expect the central banks of Brazil, Mexico and Peru to do the same before the end of the year. The board also said it was likely to carry on rapidly cutting rates.

However, the magnitude of the rate

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