Written by Natalia A. Ramos Miranda
SANTIAGO (Reuters) – Chile’s central bank said in a report on Tuesday that the economy is improving, although some sectors are lagging and financial market depth has not yet returned to pre-pandemic levels. He said he has generally recovered.
The bank said the South American country’s commercial, construction and real estate sectors were lagging behind, making a default more likely.
“External scenarios remain the main source of risk to regional financial stability,” the bank said. Meanwhile, the financial situation of local businesses and individuals has generally improved, he said in his six-month stability report.
Financial authorities added that in the consumer sector, the number of people defaulting on their mortgage payments has increased, but remains at relatively low levels.
According to the report, overall household finances are seen to be stable due to increased incomes and reduced financial burdens.
The document provided that external macroeconomic risks underline the importance of strengthening the resilience of local agents and domestic financial markets.
He also warned of risks posed by uncertainty regarding US monetary policy and rising global debt.
Chile’s inflation rate, which reached a 30-year high in 2022, is converging to the central bank’s target of 3%, and the central bank will need to lower the base interest rate from its peak of 11.25% to the current level of 6.5%. be.
The report states that the central bank’s board is plenary to keep capital requirements for risk assets at the same level since May last year, a measure aimed at increasing the economy’s resilience in the face of severe stress scenarios. The announcement was made the day after the unanimous resolution.
(Reporting by Natalia Ramos; Editing by David Alire Garcia and Susan Fenton)