Chile’s Central Bank discussed historic rate hike of more than 125 basis points at October meeting

The 125 basis points announced two weeks ago was, according to economists in charge of the country's monetary policy, the perfect combination to surprise market participants and send a message that the policy rate needed to be brought forward.

RIO DE JANEIRO, BRAZIL - With "all" board members agreeing to signal to the market that the policy rate will be at its neutral level of 3.5% sooner rather than later, the historic 125 basis point adjustment was made, bringing it to 2.75%.

According to the minutes of the October monetary policy meeting, given the evolution and risks of the economic environment - which assumes more substantial inflationary pressures due to the depreciation of the peso as a result of the discussion of a fourth withdrawal of funds from the AFP and a greater pass-through of the costs caused . . .

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