(Adds quote from cenbank president, inflation data)
SANTIAGO, March 6 (Reuters) - Rising consumer prices in
Chile have not yet reached the target set by the country's
monetary policy authority, the central bank chief said on
Monday, pointing to surprises that have pushed inflation up
while cooling expectations of interest rate cuts.
Getting inflation back to the bank's 3% target "is not
simple," said Rosanna Costa, the central bank president, at a
private event.
Costa noted the bank has kept its benchmark interest rate
steady in recent months, arguing it will likely remain unchanged
until creeping consumer prices start to approach the target.
"We will make decisions that are coherent with the macro
scenario," she said.
Chile's annual inflation rate accelerated in January to
12.3%.
The South American country's central bank is expected to
maintain the key lending rate at 11.25% at its next monetary
policy meeting in April, according to a poll of analysts.
Both the bank's forecast as well as private sector
projections expect annual inflation to return to single-digit
territory during the second quarter, Costa noted.
The central bank's chief explained that much of the pressure
on prices comes from the excessive growth in domestic spending
due to what she described as the "bulk liquidity provided by
pension withdrawals and universal fiscal transfers" in response
to the impact of the COVID-19 pandemic on household budgets.
Chile's monetary authority has carried out an accelerated
withdrawal of the monetary stimulus it applied during the
pandemic as economic activity recovered, a policy decision that
also generated strong inflationary pressures.
(Reporting by Fabian Cambero; Writing by Valentine Hilaire;
Editing by Anthony Esposito and Sharon Singleton)
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david.aliregarcia.thomsonreuters.com@reuters.net))
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