Eurozone crisis may affect emerging economies

Chile's central banker Jose de Gregorio warned Friday that the Eurozone debt crisis, if not solved quickly, may spread to the emerging economies. "In reality, the risks are centered in Europe but the situation could also have important repercussions on the emerging economies," Gregorio told a seminar held at the Technical University of Santa Maria. He said until a solution to Europe's problems is found, there might be "more intense episodes of financial stress" like those seen in the past few weeks. Chile's central bank Thursday kept its benchmark interest rate at 5.25 percent for October, but several independent financial surveys predicted that the rate would decline over the next 12 months. Gregorio insisted the Chilean financial markets have so far operated normally and the benchmark rate is both within normal range and in line with inflation target.