Chile raises interest rate by 100 basis points

By Gokhan Ergocun

ISTANBUL (AA) - Chile’s Central Bank on Wednesday increased its benchmark interest rate by 100 basis points to 10.75%.

“Global inflation has continued to rise and shows signs of increasing persistence,” the bank said in a statement.

Citing the European Central Bank’s monetary normalization process and the US Federal Reserve’s “contractionary stance” to control inflation, the bank said the global growth outlook has “deteriorated,” particularly for emerging economies.

Chile’s inflation continued on an upward trajectory in July, hitting a nearly three-decade high of 13.1%.​​​​​​​