Chile Central Bank Holds Rates at 4.5% Amid Weak Growth
Chile’s central bank has held rates at 4.5% for the sixth consecutive meeting while significantly downgrading its near-term growth outlook to 0.25%-0.75%. Despite the weaker economic activity, officials remain confident that inflation will reach the 3% target by the second quarter of next year, limiting the immediate case for rapid rate cuts.
According to GN markets/policy (en-US), the central bank has lowered its 2026 growth projection to a range of 0.25%-0.75%, citing sluggish domestic demand and sector-specific disruptions. However, the bank maintains its forecast that inflation will hit the 3% target in the second quarter of next year, with end-2026 inflation expected to remain elevated at 4.3%.
Source: GN markets/policy (en-US)According to GN markets/policy (en-US), the Bank's decision marks the sixth consecutive pause, driven by heightened uncertainty from the Iran conflict and persistent inflationary risks despite a recent acceleration in headline CPI to 4.1%. The institution warned that while copper revenues and the 2027 Reconstruction Law support investment outlooks, current economic weakness may prove more durable than anticipated.
Source: GN markets/policy (en-US)Chile’s central bank maintains its benchmark interest rate at 4.5% as economic activity contracts and inflation risks persist.
Source: GN markets/policy (en-US)
