Chile Interest Rate

The Central Bank of Chile unanimously decided to keep the monetary policy rate steady at 5% at its June 2025 meeting. The decision came amid a complex global environment marked by persistent trade tensions, slowing US growth, and heightened geopolitical risks from the Middle East conflict. While financial markets have somewhat stabilized and copper prices have risen, oil prices surged following the recent escalation of war. Domestically, first-quarter economic activity exceeded expectations, driven by exports and resilient services, though the labor market remains weak with slow job creation and rising unemployment. Inflation has moderated, with headline and core CPI easing to 4.4% and 3.6% in May, and medium-term expectations anchored at 3%. The central bank noted that despite easing risks, global uncertainty may still disrupt inflation convergence. Looking ahead, policymakers signaled that if projections hold, the rate may gradually return to neutral range in the coming quarters.