Reuters: US Dollar Report: Chile cbank holds key rate, flagging weaker economy, peso

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Chile cbank holds key rate, flagging weaker economy, peso May 16th 2013, 22:10 SANTIAGO | Thu May 16, 2013 6:10pm EDT SANTIAGO May 16 (Reuters) - Chile's central bank held its key interest rate on Thursday, as expected, and flagged softer economic growth and domestic demand in the first quarter as well as a weaker peso currency. The rate has been held at 5.0 percent since a surprise cut in January 2012, as external economic threats countered by robust local economic growth, low inflation and ebullient domestic demand have kept the bank's hands tied.

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