Former president of the Central Bank: "The growth rate of the Chilean economy is extraordinarily low"

SANTIAGO.- The former president of the Central Bank, Roberto Zahler, said today that the growth rate of the Chilean economy is extraordinarily low considering the current high prices on commodities.

The director of Banco Santander stressed that if the country wants to advance in its development figures, the most important pending task will be to improve the economy’s productivity, which is currently exhibiting very poor rates.

Just before Chile’s upcoming 2008 3rd Annual Summit for Investors, Zahler also explained that despite the high inflation figures, it is not a good idea to continue to raise the interest rate since this could affect spending, turning it into a recessive monetary policy.

Concerning the Central Bank’s intervention in the exchange rate, Zahler said that the measure was positive, due to the fact that the low value of the dollar was taking a toll on the economy.