Economics
Chile Sees More Rate Hikes After 75 Basis-Point Increase
- Policy makers raised key rate by 75 basis points to 9.75%
- Peso has slumped 15% in the past month, raising import costs
Pedestrians wait in line outside the Central Bank of Chile in Santiago on July 13.
Photographer: Tamara Merino/BloombergThis article is for subscribers only.
Chile’s central bank raised its key interest rate by 75 basis points and flagged additional increases to come after the peso slumped to a record low, putting further pressure on rampant inflation.
Policy makers led by Rosanna Costa lifted borrowing costs to 9.75% Wednesday, as forecast by seven of 21 analysts surveyed by Bloomberg. Another 11 had expected a half-point increase, while three expected a full percentage-point hike or more. The bank lifted borrowing costs by the same amount last month.