Chile Interest Rate

The Central Bank of Chile cut its benchmark interest rate by 75 bps to 6.5% in April, in line with market expectations and acknowledging global inflation declines yet highlighting risks associated with cost increases. Market expectations indicate a potential delay in U.S. interest rate cuts, influencing Chile's financial market trends. Although economic data presents a mixed picture, with weaker demand and inflation surpassing expectations due to factors like exchange rate depreciation and external price hikes, ongoing improvements are evident. Despite these strides, the persistence of rising inflation and imported cost pressures necessitates continuous monitoring. Looking ahead, the Board envisions further rate reductions in line with the macroeconomic scenario outlined in the forthcoming MP Report.