Chile central bank benchmark rate seen at 10.25% in September: poll of traders

Chile's central bank would raise the Monetary Policy Rate (MPR) to 10.25% at its September meeting to counteract inflationary pressure, a survey of market operators showed on Monday.

Chile's central bank would raise the Monetary Policy Rate (MPR) to 10.25% at its September meeting to counteract inflationary pressure, a survey of market operators showed on Monday. The MPR, which has been at 9.75% since July, would drop to 8.5% over a 12-month horizon.

The poll shows that consumer prices are expected to rise by 1.2% in July, which would result in an inflation rate of 9% in 12 months, above the central bank's tolerance rate. The Chilean peso is also expected to trade at 905 per dollar in 7 days and 920 in 28 days, according to the operators.

(Report by Fabián Andrés Cambero; Writing by Alexander Villegas)