Beginning of the end for Chile’s giant rate hikes

Lower growth: Workers at the La Vega Central fruit and vegetable market in Santiago. As local credit remains weak, Chile’s consumer and businesses’ economic views have become more pessimistic. — Bloomberg

SANTIAGO: Chile’s central bank raised its interest rate by 150 basis points (bps) for the second straight meeting and said future hikes will be smaller, in a sign that policy makers are nearing the end of their aggressive tightening cycle.

The bank board, led by its new president, Rosanna Costa, lifted the overnight rate to 7% late on Tuesday, as expected by six of 19 economists in a Bloomberg survey that had a 7.5% median estimate.