Chile: Staff Report for the 2005 Article IV Consultation: Staff Report for the 2005 Article IV Consultation
IMF Staff Country Reports, September 1, 2005
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- Chile: Staff Report for the 2005 Article IV Consultation: Staff Report for the 2005 Article IV Consultation
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Bibliographic details
- Published: September 1, 2005
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451951592.002
Short-term economic outlook
- The report highlights the short-term economic outlook for Chile.
- Core inflation has risen, reflecting:
- the gradual closing of the output gap, and
- second-round effects of higher energy prices.
- The central bank plans to continue gradually withdrawing monetary stimulus.
- The central bank has appropriately started to raise interest rates; further increases will likely be needed depending on developments in inflation and the closing of the output gap.
Fiscal policy and institutional framework
- The government is firmly committed to the structural surplus rule.
- Fiscal policy is discussed in the context of the structural surplus rule (policy guidance and commitment emphasized).
Monetary policy and inflation dynamics
- Core inflation increase is a principal concern driving monetary policy normalization.
- Monetary policy stance:
- Gradual withdrawal of monetary stimulus is planned.
- Interest rates have been raised and may require further increases depending on inflationary developments and output gap closure.
Subjects and keywords (as listed)
- Subject: Banking, External debt, Fiscal policy, Income, Inflation, Metal prices, National accounts, Prices, Public debt
- Keywords: Asia and Pacific, authority, banking industry, CR, economic growth, fiscal policy rule, forecast inflation, Global, government transfer, Income, Inflation, inflation targeting, ISCR, market, Metal prices, monetary policy, monetary policy condition, unemployment rate