UPDATE 1-Chile central bank holds benchmark interest rate steady at 2.5 pct

By Kitco News / February 01, 2018 / www.kitco.com / Article Link

(Adds Central Bank comment, details on inflation target)

SANTIAGO, Feb 1 (Reuters) - Chile's central bank voted unanimously to keep its benchmark interest rate unchanged at 2.5 percent at its monthly policy meeting on Thursday, in line with market expectations.

The bank said it would leave open the possibility for increased stimulus should inflation continue to lag behind its target rate.

Chile's inflation for the full year of 2017 was 2.3 percent, the lowest in five years and shy of the bank's target of 3 percent.

Inflation in the world's top copper producer is expected to remain low in the short-term, the bank added, though it said risks that it would fail to converge on its target had eased.

"Regardless, the board will remain attentive to signals that could slow convergence of inflation {towards the target} and justify additional monetary stimulus," the bank said in a statement.


(Reporting by Dave Sherwood; Editing by Lisa Shumaker and Grant McCool)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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