De Gregorio confirms likelihood of interest rate cuts

SANTIAGO.- The president of the Central Bank, José De Gregorio, stated today that, although they would be more moderate than those executed during the first quarter, it is possible that interest rate cuts will continue amid a slowdown in the economy and decreased inflation.

The Central Bank slashed the monetary policy rate (TPM) by 100 base points in January, 250 points in February and 250 points in March, leaving it at 2.25. The reductions represent a historic total cut of 600 points in the first three months of 2009.

"Given the speed at which information is developing, it is impossible to rule out further potential adjustments to lower the TPM", De Gregorio stated during a speech before Asimet metallurgicl business professionals.

"The cuts, however, will be of a magnitude and frequency similar to those made in past years, which differ greatly from those that have been made during the last three months", he added.