Central Bank lowers growth estimate, placing the figure between 4 and 5% for 2008

SANTIAGO.- Decreased growth and higher inflation – this is the scenario forecasted by the Central Bank for 2008 in its May Monetary Policy Report.

The financial entity has predicted that the yearly growth rate for the GDP will fall within a range between 4% and 5% this year, a rate lower than that of 2007, “with a tendency leaning toward the lower end of the spectrum”.

The forecast is lower than that of the IPoM for January, which had predicted a growth rate of between 4.5 and 5% for the Chilean economy during 2008.

Meanwhile, the Central Bank has increased its inflation estimate for the year.  The report indicates that the annual CPI inflation rate will be 4.7% in December of this year (compared to the 4.5% estimated by the previous IPoM) with a yearly average of 6.9%.