Chile Central Bank Cuts Key Rate By 25 Bps

(RTTNews) - Chile's central bank reduced its key interest rate by a quarter point for the third straight meeting, on Thursday.

The Board of the Central Bank of Chile decided to cut the monetary policy interest rate by 25 basis points to 2.5 percent. The bank had lowered the rate in March and April, by a similar 25-basis point.

The bank said inflation remained at 2.7 percent and expectations at the end of the projection horizon are near the target.

The board reiterated its commitment to conduct monetary policy with flexibility so that projected inflation stands at 3 percent over the policy horizon.

Any future changes in the monetary policy rate will depend on the implications of domestic and external macroeconomic conditions on the inflationary outlook, the bank added.