At its 17 April meeting, the Central Bank decided to keep the policy rate at 4.00%. The decision was on par with market expectations. This is the first meeting in which the Bank decided to keep its policy rate unchanged following two consecutive meetings in which it was cut by 25 basis points each time. According to the Bank, local economic news confirm weakened vitality in the economy. This observation is in line with the scenario the Bank introduced in the previous monetary policy meeting in March. Regarding price developments, the Central Bank stated that headline CPI has increased, which reflects, “higher prices for foodstuff and fuels, together with the depreciation of the peso.” However, inflation expectations are still near the Bank's target range of 3.0% plus/minus 1.0 percentage points. LatinFocus Consensus Forecast panelists see the policy rate at 4.50% by the end of the year. Panelists expect the policy rate to end next year at 4.06%.
Chile Monetary Policy
Central Bank keeps policy rate unchanged
April 17, 2014
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Chile Economic News
October 12, 2016
In September, the Adimark GfK consumer confidence index (IPEC, Índice de Percepción de la Economía) rose slightly, inching up from August’s record-low of 31.5 points to 33.4 points.
October 7, 2016
In September, consumer prices rose 0.2% over the previous month, which came in above August’s flat reading.
October 6, 2016
In Q3, the mood among Chilean businesses improved and reached the highest level in a year.
October 5, 2016
In August, economic activity rose 2.5% over the same month last year, according to the monthly indicator for economic activity (IMACEC).
October 5, 2016
The Chilean government presented the most austere budget proposal in over a decade on 30 September.