Chile's economy will be weaker than expected this year and in the medium term as investment has fallen off sharply, the nation's central bank said.In spite of central bank easing of monetary policy.
[CBC president Rodrigo] Vergara said in a speech to Congress that the central bank will keep easing monetary policy, pointing to expectations that the key monetary policy rate will fall to around 3.0% by the end of the year from 3.5% now. He added that this stimulus should be enough to ensure a gradual recovery in the economy, especially toward the end of the year.
The central bank has been steadily cutting its policy rate, chopping 150 basis points since late last year, to bring the rate to 3.5%.Time to re-read How Chile Became a Free and Prosperous Society.
Let's hope the re-birthing process isn't as painful this time. [Update:] Though the evidence is mounting that it might be;
In a last-ditch effort to force banks to comply with new ATM security standards — which many have neglected to implement, calling them costly and “unrealistic” — the government announced it would begin fining banks whose ATMs were robbed.
“A blown-up ATM is a fined ATM. For every ATM blown up in Chile, the corresponding bank will be fined,” Interior Undersecretary Mahmud Aleuy said.
“If banks met the safety standards we’ve agreed upon, they wouldn’t be robbed,” he added.