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.
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