Chilean fruit exporters welcome interest rate reduction

The general manager of the Fruit Producers' Federation (Fedefruta), Juan Carlos Sepulveda, welcomed the Central Bank's second consecutive reduction of the interest rate to 4.5% a year, announced on Tuesday.

According to the producers' representative the measure would help activate the export sector and, he added, "now there will be a greater chance of reaching a more competitive exchange rate because the rate is less attractive for speculative capital inflows, the same that, in recent years, have influenced the weaker dollar trend."

According to Fedefruta, this measure opens opportunities to alleviate some of the economic effects caused by the frosts in September, as this season's fruit exports -which could decline by 20% in volume- will depend on achieving the best price in the international markets and a higher exchange rate level.

On Tuesday, in their monthly monetary policy meeting, the Central Bank Council agreed on reducing the monetary policy's interest rate by 25 base points, from 4.75 to 4.5 points per year. A measure that relaxes monetary policy and is gives domestic consumption an extra incentive.


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