Chile’s economy contracted at the fastest pace in seven months in September, the month before the central bank voted unanimously to cut interest rates, according to the minutes of its Oct. 17 meeting.
The Imacec index, a proxy for gross domestic product, shrank 0.8 percent from August on a seasonally adjusted basis, the central bank said in a report posted on its website today.
From a year earlier, the economy grew 3.9 percent, compared with the 4.0 percent median forecast of 17 economists polled by Bloomberg.
Central bankers cited weaker domestic demand and a slowing economy for last month’s rate cut, according to the minutes released today.
A consumer spending boom may be easing, with retail sales climbing 7 percent in September from the year earlier, compared with 12 percent the month before.
As the prospects for slower growth mount, the central bank cut its benchmark interest rate a quarter point to 4.75 percent in October for the first time in 21 months.
“This year growth has decelerated moderately, while showing the lowest unemployment numbers in 30 years, reflecting a robust economy that has managed to resist a very complicated external situation,” Finance Minister Felipe Larrain told reporters yesterday.
The jobless rate was unchanged at 5.7 percent in the three months through September, down from 6.5 percent in the year-earlier period.
Policy makers reduced their growth forecast for this year on Sept. 4 to between 4 percent and 4.5 percent from 4 percent to 5 percent, citing weaker external conditions and a slowdown in the first half of the year.
Consumer spending and investment in the mining industry sustained growth of 4.3 percent in the first half of the year, down from 5.6 percent last year.
bloomberg.com
The Imacec index, a proxy for gross domestic product, shrank 0.8 percent from August on a seasonally adjusted basis, the central bank said in a report posted on its website today.
From a year earlier, the economy grew 3.9 percent, compared with the 4.0 percent median forecast of 17 economists polled by Bloomberg.
Central bankers cited weaker domestic demand and a slowing economy for last month’s rate cut, according to the minutes released today.
A consumer spending boom may be easing, with retail sales climbing 7 percent in September from the year earlier, compared with 12 percent the month before.
As the prospects for slower growth mount, the central bank cut its benchmark interest rate a quarter point to 4.75 percent in October for the first time in 21 months.
“This year growth has decelerated moderately, while showing the lowest unemployment numbers in 30 years, reflecting a robust economy that has managed to resist a very complicated external situation,” Finance Minister Felipe Larrain told reporters yesterday.
The jobless rate was unchanged at 5.7 percent in the three months through September, down from 6.5 percent in the year-earlier period.
Policy makers reduced their growth forecast for this year on Sept. 4 to between 4 percent and 4.5 percent from 4 percent to 5 percent, citing weaker external conditions and a slowdown in the first half of the year.
Consumer spending and investment in the mining industry sustained growth of 4.3 percent in the first half of the year, down from 5.6 percent last year.
bloomberg.com
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