The Central Bank of Chile would raise the reference rate to 5% at its meeting at the end of January, in the accelerated withdrawal of the monetary stimulus that it had maintained since the arrival of the coronavirus pandemic in the country, according to a survey of the organization to operators .
The rate, which has been at 4% since mid-December, would rise again in March to 5.5%, in May to 6% and would remain at that level until January 2023 when it would drop to 5.75 percent.
For their part, consumer prices would increase 0.5% in December compared to the previous month, with which inflation would accumulate 5% in 12 months, above the Central Bank’s tolerance range.
Likewise, the Chilean peso will trade at 850 units per dollar in seven and 28 days, according to those surveyed.
At the same time, the Chilean economy grew 14.3% in November compared to the same month of the previous year and more than expected, driven by the reopening of services and shops after the lifting of restrictions imposed by the pandemic, the Central Bank reported.
According to preliminary information provided by the Bank, through the Monthly Index of Economic Activity (Imacec), the economy grew 0.3% in November compared to October.
“All the components of Imacec grew compared to the same period of the previous year, highlighting the contribution of services activities and, to a lesser extent, commerce,” explained the monetary policy supervisor.
The year-on-year result “was explained, in part, by the greater openness of the economy, the measures to support households and the partial withdrawals of pension funds,” explained the central bank.
