Chile Interest Rate

The Central Bank of Chile unanimously kept its monetary policy interest rate unchanged at 5% during its April meeting, marking the fourth consecutive hold. The decision reflects heightened global uncertainty, particularly after the US announced new tariffs in early April, which have weighed on growth and inflation expectations. Global financial markets have seen increased volatility, with long-term US interest rates rising sharply and stock markets and currencies experiencing mixed movements. Despite this, Chile’s local financial conditions have improved, with declines in interest rates, a stronger peso, and gains in the stock market. Economic activity is gradually recovering, supported by export-related sectors and improving domestic demand. In March, headline inflation stood at 4.9%, while core inflation eased to 3.7%. The Central Bank reiterated its cautious and flexible approach to monetary policy, aiming to guide inflation toward its 3% target over the next two years.