De Gregorio foresees new interest rate cuts

SANTIAGO.- Reiterating previous statements, Central Bank president José de Gregorio announced today that the financial entity may be looking to make further cuts to the monetary policy rate (TPM) over the next few months, taking the figure to historic lows.

The Central Bank Council slashed the Monetary Policy Rate by 650 base points between January and April amid a rapid decrease in inflation, which could return to 3% by the middle of this year.

"There could be new reductions (in the rate) in the coming months", De Gregorio stated during a presentation on economic forecasts.

De Gregorio asserted that, despite the fact that national activity is feeling the effects of the complicated global economic scenario; citizens should trust that Chile "has a healthy economy, with flexible economic policies, that is capable of maintaining extensive policies and facing the difficult international situation".