(Adds IMF’s comments, background details)
SANTIAGO, July 22 (Reuters) - The International Monetary Fund projects that Chile’s economic growth will pick up pace in 2015.
Gross domestic product in the top copper exporter is seen expanding by 3.2 percent this year and 4.1 percent in 2015, the IMF said in a report posted on Tuesday on the Chilean central bank’s website.
“Growth is expected to bottom out in 2014 and gradually return to trend. Growth will reach 3.2 percent in 2014 and recover to its potential level by 2016, supported by monetary easing, the peso depreciation, and recovery in the global economy,” the IMF said.
Chile’s central bank cut its benchmark interest rate last week by 25 basis points to 3.75 percent for the first time since March as worries about a slowing economy outweighed concerns over above-target inflation.
The bank began its easing cycle in October, reducing rates from 5.0 percent to 4.0 percent by March. But fears of fanning inflation stayed its hand since then. (Reporting by Anthony Esposito; Editing by James Dalgleish and Phil Berlowitz)