Banco Central De Chile To Maintain Loose Policy During Covid-19 Outbreak

• The Banco Central de Chile (BCC) will lower its benchmark monetary policy rate to 0.75% by end-2020, from 1.00% currently, in an effort to limit the economic impact of the Covid-19 (coronavirus) pandemic.
• Despite rising inflation, the BCC will use loose monetary policy and several other measures over the coming quarters to attempt to stabilize financial markets.
• Risks to the interest rate forecast are weighted to the downside, as the economic impact of the coronavirus could be larger than is anticipated, which would likely prompt the BCC to loosen monetary policy further.

  (Source: Fitch)