Chile: 2009 Article IV Consultation: Staff Report; Staff Statement and Supplement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Chile

IMF Staff Country Reports, September 9, 2009

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Canonical URL: Chile: 2009 Article IV Consultation: Staff Report; Staff Statement and Supplement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Chile

Publication date: September 9, 2009
Core message: The Chilean economy proved resilient in the face of the global financial crisis.
Policy response characterization: sizable, well balanced, and coordinated.
Executive Directors' appraisal: commended the Chilean authorities for a sound policy framework and endorsed the Central Bank of Chile’s decision to implement alternative means of monetary easing to support activity and a return of inflation to the target.

Resilience:
- The Chilean economy has proved resilient in the face of the global financial crisis.
Policy response:
- The policy response to the crisis has been sizable, well balanced, and coordinated.
Institutional strengths:
- Sound policy framework underpinned by an inflation target regime, a structural budget rule, and a flexible exchange rate regime.
Monetary policy:
- Directors endorsed the Central Bank of Chile’s decision to implement alternative means of monetary easing to support activity and a return of inflation to the target.

Subject areas: Banking, Central bank policy rate, Credit, External debt, Financial services, Fiscal policy, Money, Public debt
Keywords: BCCh, Central bank policy rate, central bank recapitalization, CR, Credit, Global, ISCR, liability positions vis-à-vis nonresident, policy, policy meeting, rate, staff appraisal, superintendency of bank