Yesterday the Chilean central bank voted to cut interest rates to 0.5%. This was a reduction from the previous rate of 0.75% and was largely expected by markets. The Chilean peso weakened following the decision, falling to currency rates of 552.95 against the US dollar.

Weakness in the peso is also due to low appetite for risk at present, and the view that the involvement of the central bank in the economy is reaching critical levels. The bank is now offering six-month loans to national banks in a bid to stimulate credit markets as Chile remains mired in recession.

The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.