Chile's Central Bank keeps key interest rate at 5.75% amid inflation pressures and fading recovery.

Chile's Central Bank maintained its key interest rate at 5.75%, its first pause since the easing cycle began, citing inflation pressures and fading economic growth recovery as reasons. The decision aligns with the bank's strategy to consider macroeconomic trends and their impact on inflation. Chile's Finance Ministry lowered its 2024 inflation forecast to 3.7%, while traders project an annualized inflation rate of 3.9% for July. The bank is expected to adjust rates based on the broader economic situation.

July 31, 2024
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