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Santiago . Chile's central bank left the monetary policy rate (MPR) stable at 2.5% on Tuesday, in a decision expected by the market and occurring in uncertainty over the effects of the trade war between China and the United States.
The decision to maintain the key rate was unanimous among the directors of the entity and enrolled in an expansive monetary policy cycle that would be nearing its end.
"The Board expects the rate of monetary policy At the external level, the Central Bank has noted that the risks associated with the trade conflict between the United States and its partners – mainly China – are returned to their neutral level in the coming quarters, "said the issuing institute in its release. has hit the markets, with widespread declines in commodity prices, including copper, of which Chile is the world's largest producer.
"That ends up putting up cold rags" BBVA said in a report
At the national level, the Central Bank pointed out that, although the economy has shown greater dynamism than expected and the short-term outlook for inflation has been corrected upwards, its medium-term outlook has not changed.
He also pointed out that consumer confidence is showing progress, but the labor market is still lagging behind and wages are rising
"We continue to see that the first quarter of 2019 marked the first step from a rise in the rate of monetary policy, progressing slowly towards our 4% neutral MPR estimate that would only be reached by 2020 ", estimated BBVA.
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