Chile Central Bank Holds Key Rate As Expected

(RTTNews) - Chile central bank decided to keep its key rate unchanged as expected on Thursday and said that core inflation was unexpectedly high.

The Board of the Central Bank of Chile decided to hold the key rate at 3 percent.

The bank has lowered the rate by 25 basis points in October from 3.25 percent.

The board said that January's inflation, particularly core inflation, was unexpectedly high and that the annual inflation is expected to remain above the upper bound of the tolerance range for some months.

The evolution of inflation will be monitored, the bank said.

At the same time, 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 central bank said.