Chilean Peso Rallies as Inflation Climbs
The Chilean peso rallied after inflation jumped more than was forecast by economists, reducing probability of an interest rate cut by the nation’s central bank.
Chile’s consumer prices jumped 0.6 percent in December. That’s three times above the average forecast. Pablo Castro, an economist at Banco Santander Chile, said:
There is an almost zero probability that the central bank will cut rates in January. The central bank forecast was off by 50 basis points in just one month. That’s a warning signal that the bank will be more cautious in observing whether this inflation phenomena reverses or not.
USD/CLP closed at 510.4500 after opening at 510.8500.
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Earlier News About the Chilean Peso:
- Chile's Peso Goes Higher After Central Bank Maintains Key Interest Rate (2011-12-14)
- Chilean Peso Drops After Central Bank Maintains Interest Rates (2011-11-16)
- Chile Maintains Main Interest Rate (2011-10-14)
- Chilean Peso Goes Higher with Copper on Optimistic Mood (2011-10-13)
- Chilean Peso Falls as US Economy Reduce Risk Appetite (2011-05-17)