Chile and Peru Keep Rates at 4% Amid Above-Target Inflation

Chile and Peru kept interest rates unchanged yesterday as the central banks in both countries contend with above-target inflation and slowing economic growth.

Chilean policy makers, led by bank President Rodrigo Vergara, held the benchmark rate at 4 percent, as forecast by 16 of 17 economists surveyed by Bloomberg. One analyst predicted a quarter-point cut. Peru’s policy makers, led by bank President Julio Velarde also kept rates steady at 4 percent, as forecast by all 12 economists surveyed by Bloomberg.