The Board of the Central Bank of Chile unanimously kept the monetary policy rate at 4.5 %, citing heightened global uncertainty and a surge in oil prices towards USD 100 per barrel after the war in the Middle East, which is expected to raise inflation and weigh on activity. The rate has been unchanged since a 25 bp cut in December 2025. Reflecting tighter global conditions, Chile’s peso has depreciated, local bond yields have risen and equities have retreated. At home, GDP expanded by 2.5 % in 2025, but January’s Imacec undershot expectations, while private consumption stayed firm and investment was supported by mining and energy projects amid steady unemployment. February headline CPI slowed to 2.4 % year on year, yet the external fuel shock and weaker currency are projected to lift inflation to about 4 % in the second quarter before retreating toward the 3 % target by 2027; two-year inflation expectations stand at 3 % (EEE) and 3.1 % (EOF). The Board will decide policy “meeting by meeting” and stands ready to act if pass-through or persistence risks intensify, reaffirming its commitment to bring inflation to 3 % within two years.
Central Bank of Chile 2026-03-24
Chile’s central bank keeps policy rate unchanged at 4.5 %
Central Bank of Chile held the policy rate at 4.5 %, unchanged since its 25 bp cut in December 2025, citing heightened global uncertainty and oil approaching USD 100 that are expected to push inflation to about 4 % in Q2 before easing toward the 3 % target by 2027. The Board will decide “meeting by meeting” and signalled readiness to tighten if pass-through or persistence risks grow.