SANTIAGO, Chile (AP) -- Chile's central bank is raising its benchmark interest rate 50 basis points to its highest level in nearly 10 years to fight rising inflation.The bank is boosting its lending rate to 7.75 percent, warning Thursday that additional adjustments will likely be necessary to ensure inflation meets its 3 percent target in the next two years.
Annual inflation reached 9.5 percent in July, Chile's highest rate since 1994.
The bank says inflationary pressures continue to plague prices, while international financial markets remain "tense" and developing economies face "weak" growth prospects.
Read More
