The Central Bank of Chile maintains its monetary policy strategy for the coming months and confirms that interest rates must continue to be reduced, by magnitudes of 50 or 75 basis points, considering both options “plausible.” This is clear from the minutes of the entity’s last monetary policy meeting, concluded on May 23, in which it was agreed to raise interest rates to 6%, after a cut of 50 basis points. At this meeting, all the directors agreed that the information accumulated since the last meeting indicated that the monetary policy rate should continue to be reduced, given the expected evolution of the macroeconomic scenario in Chile and internationally. All in all, it should be noted that this Friday the inflation corresponding to the month of May in Chile was known, which has risen one tenth compared to April, up to 4.1%, which once again puts the index on an upward trend. Although both options at the last meeting – 50 or 75 basis points – met the need to continue reducing the rate, reflecting the progress of the economy in resolving the significant macroeconomic imbalances and the process of inflationary convergence, The option of cutting the rate by 50 points clearly dominated when comparing both alternatives. Furthermore, the option to lower 50 basis points had “the great advantage” that it was widely expected, so it would not cause significant changes in market prices, as the bank has explained.
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