SANTIAGO May 7 Chile's interest rate is not
likely to be lowered below 2.5 percent, Central Bank Vice
President Sebastian Claro said in an interview in a local paper
published on Sunday.
The bank cut the rate to 2.75 percent in April, its third
cut this year as growth expectations remain modest and inflation
is under control. Minutes showed the central bank board had
weighed holding the rate steady in April.
"Going beyond a rate of 2.5 percent would require a
deviation from the base scenario that is not observed today,"
Claro told La Tercera newspaper.
Claro maintained the bank's outlook for economic growth of
between 1 and 2 percent for 2017.
(Reporting by Fabian Cambero; Writing by Caroline Stauffer;
Editing by Mary Milliken)