Chile cenbank considered cutting rates by 50bps, halting easing in June
Updates with minutes quote and context
SANTIAGO, July 4 (Reuters) -Chile's central bank said on Thursday its board considered cutting the country's benchmark interest rate by 50 basis points or keeping it unchanged at its June meeting, when it voted for a 25-basis-point reduction to 5.75%.
The monetary authority said that the board's final decision had the advantage of clearly stating that however important the shock on inflation was, it was transitory, and left room for a further reduction in the remainder of the year.
This "option was the most consistent one with the monetary policy report's central scenario", minutes from the meeting showed, with all the board members considering it "plausible" even if one of them decided to vote for the 50-basis-point cut.
The 25-basis-point reduction last month followed rate cuts of 50 basis points in May, 75 basis points in April, and 100 basis points in January after inflation decelerated in the world's largest copper producer.
According to the minutes, Chile's economy has evolved in line with the monetary policy forecast from March, with activity heading towards consistent growth, but with "heterogeneity" across sectors.
It also noted that the appreciation of the peso could indicate a more dynamic domestic demand.
Reporting by Fabian Andres Cambero and Stéphanie Hamel; Editing by Gabriel Araujo
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