*Chile’s central bank (BCCh) has announced it is lowering its benchmark interest rate by 25 basis points to 5.5%, restarting a rate reduction cycle that was halted in July. In a statement, the BCCh said that if its economic forecasts are met, “the reduction of the key rate toward its neutral level will be somewhat faster than expected in June”. The BCCh added that: “this will occur at a pace that will factor in the evolution of the macroeconomic scenario and its implications for the path of inflation.” Annual inflation in Chile has been on an upward trajectory in recent months, with inflation reaching 4.6% in July, above the BCCh’s target of 3%.
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