Chile: As expected, central bank kept policy rate at 3.00%

In accordance with both our and market expectations, the central bank kept the policy rate at 3.00% in December’s meeting. The communiqué still highlights the CPI inflation print of above 5% YoY. The neutral bias for interest rates was kept unchanged, although weakness in activity figures persists. In our view, the economy requires additional monetary stimulus that will materialize at the start of 2015.

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