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Chile cenbank will raise interest rate to 3.25 pct by July


Reuters


SANTIAGO, Feb 12 (Reuters) - Chile's central bank will hike its benchmark interest rate to 3.25 within five months, up from 3.0 percent currently, according to a monthly poll of 52 analysts published by the bank on Tuesday.

The economists also forecast 0.1 percent inflation in February, rising to 0.3 percent next month, according to the poll.

Chilean central bank policymakers made a surprise decision in October to increase the benchmark interest rate by a quarter percentage point, ending a long cycle of expansive monetary policy in Latin America's most stable economy.

The poll asks respondents about rate prospects for five months', 11 months', 17 months' and 23 months' time.

Economic growth for Chile, the world's top copper producer, is expected to hit 3.2 percent in the first quarter of 2019, as prices for the red metal begin to recover as global trade tensions calm, according to the poll.

Annual inflation is expected to reach 2.80 percent over the next 11 months, according to the poll, on the low end of the Central Bank's target range.

Median estimate (pct)

Inflation in February

0.10

Inflation over next 11 months

2.8

Interest rate in February

3.0

Interest rate in 11 months

3.5

Exchange rate in 2 months (peso/$)

655

Imacec in January (y/y)

2.8

GDP in Q1 2019 (y/y)

3.0






This article appears in: Politics , Stocks , World Markets



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