By Aislinn Laing
SANTIAGO, Sept 16 (Reuters) – Chilean business sectors adapting to a “new reality” in the coronavirus pandemic has contributed to a gradual stabilization in the economy as contagion rates diminish and lockdowns are slowly eased, the country’s central bank said on Wednesday.
The bank highlighted the “greater flexibility” of business, coupled with “the implementation of various initiatives to support companies and individuals and, also, the deployment of fiscal and monetary stimulus,” according to minutes of the bank’s latest policymaking meeting.
The Chilean government has announced at least $29 billion, close to 12% of GDP, worth of measures to combat Covid-19 and reactivate the economy, including one-off cash handouts, loans and mortgage deferrals for hard-hit citizens. A law allowing eligible individuals to withdraw 10% of their pensions early also brought an injection of liquidity.
However, the central bank board agreed unanimously that there was “no other option” than