Chilean Peso Eases to 8-Month Low after Rate Decision

The Chilean peso depreciated to around the 870 per USD mark after Bank of Chile’s September meeting, holding at over eight months low, amid stronger dollar.

The Latin American Central Bank resumed its easing cycle that started in July and cut its key rate by 75bps to 9.5%.

The MPC mentioned both headline and core inflation continued to slow as the annual headline inflation fell to 6.5% in July from 7.6% in June and core inflation fell to 8.5% from 9.1%.

The slowdown was mostly due reduction in core inflation for goods and the volatile component while inflation in services has had a slower decline.