Chile, the long country stretching along South America’s western edge, which had witnessed a GDP growth of 4 percent last year from a 1.7 percent a year earlier, had been working on a more expansive monetary policy alongside financial stimulus to counter impacts of a horrendous trade conflict between the world’s first- and second-largest economy, Chile’s finance minister, Felipe Larrain, said in an interview with a Chilean newspaper, El Mercurio later last week.
According to the El Mercurio report published on Sunday, the 11th of August 2019, keeping the doors open to further policy easing and financial stimulus, Chile’s Finance Minister, Felipe Larrain said, “We’re going to have a more expansive fiscal policy.
We’re thinking of additional measures to stimulate the economy. ” Chilean economy, a hefty portion of which Gross Domestic Product comes from mining, had been scuffling more than a year, as China’s tumbling factory orders and manufacturing output were dampening outlook for the energy-rich South American nation.
Further into the bargain, Chile, the No. 1 copper producer across the world, had bottlenecked its economic growth projection to 3 percent earlier from a prior estimate of 3.8 percent. Since, China’s manufacturing activity had been contracting sharply alongside other European G7 majors likes of Germany, demands of Chile’s copper alongside other industry-grade metals have been witnessing a sweeping plunge.
Amid such economic backdrop with simmering worries over trade tension, Chile’s Central Bank had unexpectedly slashed its benchmark interest rate by 50-bp to 2.50 percent in June, while analysts were quoted saying that further monetary injections, policy easing alongside another rate-cut by September would likely to make landfall much-sooner than anticipated amid Trump’s China tariff war, which had worsened terribly over the recent weeks.