Chile’s inflation fell even as the nation’s currency was weakening, and this led to speculations that the central bank will reduce interest rates. Such talks weakened the Chilean peso even more.
Inflation fell to 2.8 percent in January from 3 percent in the previous month. The December’s level was highest in 19 months. The Central Bank of Chile already eased monetary policy in October and November and may do so again. Such prospects are negative for the peso.
USD/CLP was up from 552.15 to 552.85 as of 12:59 GMT today.
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