The Chilean peso went down today even as the nation’s central bank refrained from decreasing interest rates amid concerns about impact of the European crisis on the global economy.
Chile’s central bank decided to leave the main interest rate at 5.25 percent yesterday. Chile has the second highest borrowing costs among Latin American nations. The bank wrote:
Domestically, output figures are evolving close to projections in the last Monetary Policy Reportâs baseline scenario, while domestic demand is somewhat stronger.
The negative impact of the European crisis may yet hurt the Chilean economy, but the Banco Central de Chile has room to ease its monetary policy.
USD/CLP rose from 509.3000 to 512.5500 today as of 18:48 GMT.
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