Latest bank decision: At its meeting on 15 May, the Central Bank decided to lower the target for the overnight...
Policy Interest Rate in Chile
Chile's central bank policy interest rate has fluctuated notably in the last decade. During the 2019 social unrest and the 2020 COVID-19 pandemic, rates were significantly lowered to stimulate the economy. As inflation began rising sharply in 2021, the central bank initiated a series of rate hikes, aiming to curb inflation while cautiously supporting economic recovery amid global and domestic uncertainties. Rates then began to be lowered from 2023 as price pressures ebbed.
The Monetary Policy Rate ended 2022 at 11.25%, significantly above the 4.00% end-2021 value and more than double the reading of 4.50% a decade earlier. For perspective, the average policy rate in Latin America was 18.90% at the end of 2022. For more interest rate information, visit our dedicated page.
Chile Interest Rate Chart
Note: This chart displays Policy Interest Rate (%) for Chile from 2024 to 2023.
Source: Macrobond.
Chile Interest Rate Data
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| Policy Interest Rate (%, eop) | 0.50 | 4.00 | 11.25 | 8.25 | 5.00 |
| 10-Year Bond Yield (%, eop) | 2.65 | 5.65 | 5.32 | 5.30 | 5.95 |
Central Bank of Chile leaves rates unchanged in April
Latest bank decision: At its meeting on 29 April, the Central Bank of Chile decided to maintain the monetary policy interest rate at 5.00%.
Monetary policy drivers: The Central Bank likely decided to prolong the pause in its easing cycle—which saw the policy fall by 625 basis points from mid-2023 to late 2024—in light of elevated global economic uncertainty, a robust recent economic performance, and domestic inflation which is above the Bank’s 2.0–4.0% target range.
Policy outlook: The Central Bank provided no explicit forward guidance on the future direction of interest rates. Most of our panelists see room for mild monetary easing by end-2025, given inflation should fall later in the year as the economy metabolizes past electricity tariff hikes. However, some panelists see rates on hold throughout this year.
Panelist insight: Itaú Unibanco analysts commented on the outlook: “[The] decision is in line with our view of rates-on-hold as further information is accumulated, before likely lowering the MPR during 2H25 as the both the global economy slows and ex-US inflation pressures show signs of fading.” Goldman Sachs’ Sergio Armella said: “We expect the central bank to cut its benchmark rate three times in the second half of 2025 to 4.25%. That said, we remain sympathetic to the possibility that the central bank moves to cut its policy rate earlier (e.g., June instead of July in our baseline) and towards a terminal rate of 4.0%, in line with the central bank’s neutral estimate.”
Consensus Forecasts and Projections for the next ten years
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Chilean interest rate projections for the next ten years from a panel of 34 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable interest rate forecast available for Chilean interest rate.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Chilean interest rate projections.
Want to get access to the full dataset of Chilean interest rate forecasts? Send an email to info@focus-economics.com.
Latest Global Monetary Policy News
-
Mexico: Central Bank decreases rates in May -
Serbia: NBS leaves rates unchanged in May Central Bank holds again: At its meeting on 9 May, the National Bank of Serbia (NBS) Executive Board kept its... -
United Kingdom: Central Bank decreases rate in May Latest bank decision: On 8 May, the Central Bank voted by a majority to reduce the Bank Rate by 0.25%... -
Peru: Central Bank of Peru decreases rates in May Latest bank decision: At its meeting on 8 May, the Central Bank of Peru (BCRP) decided to reduce the reference... -
Norway: Norges Bank postpones a loosening cycle again in May Policymakers deliver another widely anticipated hold: At its meeting on 7 May, Norges Bank stood pat, leaving the sight deposit... -
Brazil: Central Bank slows pace of its tightening cycle in May, as expected Central Bank hikes rates to near 20-year high: At its 6–7 May meeting, the Monetary Policy Committee (COPOM) of the... -
United States: Central Bank leaves rates unchanged in May Latest bank decision: At its meeting ending on 7 May, the Central Bank decided to maintain the target range for...