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Chile has raised its benchmark rate to a new 2-year high...and MORE than expected...by 50 basis points...to 5% from 4.5%.
As widely expected, Peru’s central bank board raised its lending rate...by 25 basis points...to 4.25% from 4%.
A Moody's analyst said: “Both countries are classified as economies that are either overheating or very close to overheating. The main reason for central banks in both countries to continue to tighten monetary policy is because they want to fight demand pressure, which is pushing up inflation.”
