The Central Bank of Chile’s board said it intends to keep rates unchanged in the months to come, abandoning its previous plans to continue cutting rates, as political turmoil drove the currency down on foreign exchange markets.

The board’s effective U-turn, as it held its policy rate at 1.75% on December 4, came after sustained civil unrest in Chile caused the country’s currency to fall sharply.  

In its statement, the board argued inflation is now expected to rise above its target of 3%