Chile Monetary Policy


Chile: Central Bank leaves policy rate unchanged at 3.00% again

May 14, 2015

The Central Bank of Chile decided to keep the policy rate at 3.00% at its meeting on 14 May. The decision was in line with market expectations. This is the seventh consecutive meeting in which the Bank has kept the policy rate unchanged.

Regarding the international economy, the Bank noted that the global outlook remained broadly unchanged, even though Q1 data came in below expectations and growth prospects for Latin America weakened. In addition, the Central Bank noted that long-term rates rose in most economies and that sovereign risk premia showed mixed performance. The Bank added that the prices for copper and oil as well as for several other commodities increased recently, while food prices fell.

On the domestic front, the Bank pointed out that data from Q1 suggest that the economy moderated somewhat, with economic activity and demand expanding at a slower pace. Employment and labor force participation registered only weak growth and the unemployment rate was unchanged. Regarding price developments, the Bank said that, “medium-term inflation expectations remain at 3%,” even though headline inflation was unexpectedly high in April. Conversely, core inflation was in line with expectations, but still remains at high levels. The next monetary policy meeting is scheduled for 11 June.

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: Teresa Kersting, Economist

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Chile Monetary Policy Chart

Chile Monetary Policy May 2015

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

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