Chile’s Peso At 10 Year High
Source: http://chileeconomy.blogspot.com/2008/03/chiles-peso-at-10-year-high.htmlPosted on Friday, March 7th, 2008 | In Chile, Market Commentary
Chile’s peso climbed to its highest in a decade yesterday on speculation the central bank will raise its benchmark interest rate in a bid to slow inflation, luring money to the country’s fixed-income market. The 3.25 percentage-point difference between the Chilean and U.S. benchmark lending rates, at its widest since March 2002, has helped fuel an 11.5 percent increase in the peso this year. That’s the biggest gain among a wide group of 26 emerging-market currencies.
The peso rose for an eighth day, strengthening 0.5 percent to 445.23 per dollar at 5:04 p.m. New York time, from 447.42 yesterday. It touched 442.69, its strongest level since February 1998.
Annual inflation accelerated to an 11-year high of 8.1 percent in February, the state statistics agency said yesterday, while a separate central bank report showed the economy expanded 3.4 percent in January.
Policy makers raised the lending rate on Jan. 10 to a six- year high of 6.25 percent in a bid to slow consumer price rises. They next meet on March 13. The central bank targets inflation at between 2 percent and 4 percent
Last 5 posts by Edward Hugh
- Global Manufacturing, France Outperforms, As Spain Continues To Flounder - November 3rd, 2009
- A New Spectre Is Haunting Europe, A Spanish One - October 31st, 2009
- Beyond The Consensus On European Bank Credit - October 27th, 2009
- The French Rebound Continues In October While Germany Moves Sideways - October 27th, 2009
- The French Rebound Continues In October While Germany Moves Sideways - October 27th, 2009
central bank, Chile, Chile, Market Commentary, New York, separate central bank report, state statistics agency, United States
![]() About Edward Hugh (http://globaleconomydoesmatter.blogspot.com)
Edward Hugh is a macro economist, who specializes in growth and productivity theory, demographic processes and their impact on macro performance, and the underlying dynamics of migration flows. Hugh is a founding member and regular contributor to a number of economics weblogs, including Global Economy Matters, Demography Matters and a number of others. Edward 'the bonobo' Hugh is a Catalan economist of British extraction based in Barcelona. By inclination he is a macro economist, but his obsession with trying to understand the economic impact of demographic changes has often taken him far from home, off and away from the more tranquil and placid pastures of the dismal science, into the bracken and thicket of demography, anthropology, biology, sociology and systems theory. All of which has lead him to ask himself whether Thomas Wolfe was not in fact right when he asserted that the fact of the matter is "you can never go home again". He is currently working on a book with the provisional working title "Population, the Ultimate Non-renewable Resource". Edward also writes regularly for the demography blog Demography Matters. He also contributes to the Indian Economy blog . His personal weblog is Bonobo Land . Edward's website can be found at EdwardHugh.net. Edward follows in detail the Indian, Italian, Spanish, German and Japanese economies. He also has a more than a passing interest in the economies of Turkey and Brazil and in the emerging economies of Eastern Europe. |




