Central Bank of Chile Raises Interest Rate to 5.5%
Posted on 01/27/2022
The Central Bank of Chile (Banco Central de Chile) raised its interest rate by 150 basis points to 5.5% from 4.0% previously. Chile is keen on tightening monetary policy to help rein in stubbornly high inflation. In December 2021, the central bank hiked rates from 2.75% to 4.5%. Consumer prices in Chile jumped 7.2% in 2021, far above the central bank’s target range of 2% to 4%.
“The evolution of inflation continues to face significant risks and their possible materialization becomes especially relevant in a context where both the annual change in the CPI and its outlook are already high”, the central bank said.
