SANTIAGO (Reuters) -Chile’s central bank on Thursday said it was cutting its benchmark interest rate to 5.25% from a previous level of 5.50%, in a unanimous decision in line with analysts forecasts.
The bank said that if the economic scenario envisaged in its September report materialize, the rate “will see further reductions to meet its neutral level.”
The bank also reaffirmed its commitment to a flexible policy to bring inflation towards 3% within the next two years.
Analysts polled by the bank this month had predicted the 25 basis point cut, pointing to lower risk of more medium-term persistency in inflation as related to shocks. They predicted the rate will hit 4.75% within five months.
(Reporting by Sarah Morland, Editing by Alexander Villegas)
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