Chile stocks rose on Friday after the central bank opted not to raise the benchmark interest rate and electric companies were boosted amid rainy weather. The IPSA blue chip index rose 0.60 percent to 2,017.49 points while the broader IGPA index climbed 0.28 percent to 9,336.48, according to preliminary closing figures. "The rise can be explained in part by the Central Bank's decision to not raise the interest rate," said Alfa Brokerage analyst Rodrigo Cristi.
Chile's central bank held its benchmark interest rate steady at its monthly monetary policy meeting late on Thursday, surprising markets that had expected a rate hike amid robust economic growth, strong domestic demand and rising core inflation.
The bank said it was maintaining the rate at 3.25 percent. In a Reuters poll of 24 financial markets traders on Tuesday, 20 said they expected a hike even though the bank raised the rate a month ago.
Cristi also said rains in the south helped the market by boosting stock in electricity companies like Enersis.
Stock in the giant energy group rose 3.77 percent to 121.00 pesos.
On the foreign exchange market the peso currency fell to 592.20/592.70 pesos per dollar compared to Thursday's close of 590.50/591.00.