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Financial News: CHILE: Central Bank Keeps Interest Rate At 2.5%

CHILE: Central Bank Keeps Interest Rate At 2.5%

07/16/2017 - 17:09:00 (RTTNews)

(RTTNews) - Chile's central bank kept the country's benchmark interest rate unchanged at 2.5% per year for the second month in a row, despite data showing that in June annual inflation in the country decreased to 1.7% - the lowest level since October 2013.

According to the monetary authority, short-term inflation expectations diminished and longer-term forecasts remain near the 3% annual target, in spite of the low inflation reading last month.

"Preliminary data on activity and demand for the second quarter are in line with expectations and account for the negative impact from mining and construction sectors," said the central bank in a statement.

"Private consumption remains stable, tracking the labor market behavior," the monetary authority added.

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