Yesterday 15:00
The Chilean peso rose in early operations when the markets reopened after the central bank’s surprise decision to slow the pace of interest rate cuts which he announced last week.
The currency rose 2.9% on Mondayaccording to estimates by Datatec, an interbank platform for foreign exchange operations managed by the Santiago Stock Exchange.
Late Thursday, the central bank reduced borrowing costs by half a percentage point, to 9%, as anticipated by only five of the 22 analysts surveyed by Bloomberg. Another 16 predicted a cut of 75 basis points.
A rate cut in Chile will drive more gains for peso bonds
In a statement released alongside the decision, policymakers wrote that they opted for a smaller rate cut. amid deteriorating financial conditions around the world. The central bank’s board also agreed to suspend its program to accumulate international reserves through dollar purchases that have contributed to the fall of the peso.
Chilean assets traded in the United States, such as the $494.8 million iShares MSCI Chile ETF, rose on Fridaywhen local markets remained closed for a holiday, indicating a positive opening on Monday.
Translated by Bárbara Briceño.
