SANTIAGO: Chile's slower pace of economic growth and soft inflation are opening up more monetary policy possibilities, but other factors must be considered and the stance on interest rates is still neutral, the central bank's president said on Friday.Asked why medium-term market expectations had recently shifted from a rate hold to a cut, Central Bank President Rodrigo Vergara told the Reuters Latin America Investment Summit that "there are some factors that in some way open up the spectrum of possibilities towards some (options) that weren't present, in particular the option of a rate cut.""What's happened in terms of inflation and in terms of activity obviously opens up more possibilities, but there are a series of elements that we still need to evaluate," Vergara added.Traders see the central bank cutting its benchmark interest rate by a quarter-percentage point to 4.75 percent within 12 months, shifting from their view of no change ...
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