Chile Maintains Main Interest Rate

The Chilean peso rose today, paring its previous decline, after the Chilean central bank kept its key interest rate unchanged, but signaled about the possibility of a rate cut in the future.
The Banco Central de Chile left its benchmark overnight rate at 5.25 percent. The bank has raised the main rate five times in the first times of this year. Yet now the policy makers say the global economic slowdown was more severe than previously expected and the state of the global economy is worsening. Analysts expect the central bank would perform a rates cut in December, earlier than previously expected.
USD/CLP slipped its opening level of 505.9000 to 500.7500 today as of 11:31 GMT after earlier it climbed to the daily high of 506.4500.

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