At its 13 March meeting, the Central Bank decided to cut the policy rate by 25 basis points from 4.25% to 4.00%. The decision was broadly in line with market expectations. This is the second consecutive meeting in which the Bank decided to cut its policy rate in order to stimulate the economy. The Bank stated that slowing demand from China has had a negative impact on metal prices, in particular the price of copper. The loss of momentum in Chile's economy reflects falling domestic output and decelerating domestic demand. Regarding price developments, the Central Bank stated that, “annual inflation has increased, reflecting higher prices for foodstuff and fuels, and the depreciation of the peso.” Nevertheless, Bank's inflation expectations are still near the Bank's 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 reduces policy rate
March 13, 2014
Looking for forecasts related to Monetary Policy in Chile? Download a sample report now.
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
For a third consecutive month, the mood among Chilean businesses improved in September after it had fallen to the lowest level in over seven years in June.
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).