Chile’s Officials Hope to Reassure Investors, ETFs
October 10th at 6:00am by Tom Lydon
While almost no one is escaping the wrath of the markets, Chile and its exchange traded fund (ETF) could be poised to rebound in good shape if they play their cards right.
Finance Minister Andres Velasco sought to reassure the public that while they have been affected, Chile is well-protected from the global financial turmoil. Chile boasts high reserves, institutions and generally good conditions. The statements came just hours after the Geneva-based World Forum issued a Global Competitiveness Report ranking Chile’s economy as the most competitive in Latin America.
Chile is somewhat entrenched in the crisis as the worldwide commodity demand is pulling money out of developed markets, such as Chile, the Associated Press reports.
The country’s central bank will probably keeps its benchmark interest rate unchanged, as policy makers decide whether a global credit crunch will slow growth and hold back consumer prices. Sebastian Boyd for Bloomberg says economists feel that the rate will hold steady at 8.25%.
Chile’s annual inflation rate more than tripled in September to 9.2% from two years ago. The top exports of oil, grains and copper have slumped.
iShares MSCI Chile Index (ECH) is down 38.1% year-to-date.
