Key Points
(Bloomberg) -- Chiles central bank slowed the pace of interest rate cuts and left its options open for the size of future reductions, signaling caution in the face of inflation risks from stronger economic activity and a weaker peso..
In a statement, they wrote borrowing costs will continue to fall, and that the easing cycle will consider the evolution of the economy and effects on inflation..
In their statement, policymakers wrote that recent data show a contrast between somewhat better-than-expected activity and weaker demand." While supply factors and services have helped drive overall growth, unemployment remains above historical averages, they wrote..
Central bankers attributed faster inflation at the start of 2024 to a weaker peso, global cost increases and also the adjustment of some local prices..
Global financial markets expect the Federal Reserve to delay the start of easing as policymakers in the worlds largest economy turn more cautious, Chilean central bankers wrote..
