Chile’s central bank cut its economic growth forecast for this year for the third consecutive quarter, following a drop in investment that a cyclical decline in the mining industry didn’t fully explain, it said.
Chile and Peru kept interest rates unchanged yesterday as the central banks in both countries contend with above-target inflation and slowing economic growth.
Chilean consumer prices rose 0.3 percent in May, the smallest increase in four months and half the pace of the month before, as pressure on costs from a weaker peso began to ease.
Currency intervention should be a last resort, Chilean central bank policy maker Rodrigo Vergara wrote in an article posted today on the bank’s website.
Chile’s central bank kept borrowing costs unchanged for the second straight month as the inflation rate reached a five-year high and economic growth a near five- year low.
"Recent economic data show some signs of deceleration."
- Rodrigo Vergara on May 16, 2013