Peso Stronger After Chilean Central Bank Avoids Interest Rate Cut

The Chilean peso advanced today after the nation’s central bank refrained from an interest rate cut on yesterday’s monetary policy meeting as inflation accelerated more than was expected.

The Central Bank of Chile kept its main interest rate at 4.5 percent. The central bank issued rather downbeat statement:

The Chilean economy has been gradually losing strength. Output is growing slightly below trend, and a slowdown is observed in domestic expenditure, as described in the Monetary Policy Report.

Meanwhile, inflation accelerated 2.4 percent in November, the highest in 13 months, as the peso was weakening.

USD/CLP was down from 531.00 to 529.87 as of 15:49 GMT today.

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