Chile Monetary Policy


Chile: Central Bank keeps policy rate on hold

January 15, 2015

The Central Bank decided to keep the policy rate at 3.00% at its 15 January meeting. The decision met market expectations. This is the third consecutive meeting in which the Bank has kept the policy rate unchanged following two meetings in which it cut its benchmark interest rate in an effort to support economic growth.

On the international front, the Bank commented that the growth outlook for the United States is positive, while the Eurozone and Japanese economies are dealing with slower growth and low inflation rates. The Central Bank added that the downward trend in commodity prices continued, with a further decline in oil and copper prices.

On the domestic front, output and demand indicators show that the economy is underperforming. However, the unemployment rate fell and nominal wages remain dynamic. In regard to price developments, the Bank said that annual inflation has dropped, while core inflation has remained broadly stable. According to the Bank, “medium-term inflation expectations remain around 3%.”

LatinFocus Consensus Forecast panelists see the policy rate at 2.86% at the end of 2015. Panelists expect the policy rate to end 2016 at 3.83%.

Author:, Senior Economist

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Chile Monetary Policy Chart

Chile Monetary Policy January 2014

Note: Monetary Policy Rate (TMP, Tasa de Politica Monetaria) in %
Source: Chile Central Bank (BCC)

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