Bloomberg News

Chile’s Vial Sees Fewer Brakes on Inflation, La Segunda Reports

March 02, 2012

Chile’s central bank needs to watch inflation more carefully after restraints on price rises diminished, Joaquin Vial, the newest member of its monetary- policy board told La Segunda in an interview published today.

Faster-than-forecast economic growth, higher-than-expected copper prices and the improved international economy mean that some of the factors that would have otherwise constrained price rises are no longer there, Vial told the Santiago-based paper.

The current interest rate is roughly neutral, he was quoted as saying. The bank could either lower rates because of a weakening international economy or raise them because of strong domestic demand, La Segunda quoted him as saying. Either option is equally viable, he told the newspaper.

To contact the reporter on this story: Sebastian Boyd in Santiago at sboyd9@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net


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