Central Bank reduces rates: At its September meeting, the Central Bank of Peru (BCRP) decided to cut the reference interest...
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 policy interest rate ended 2024 at 5.00%, compared to the end-2023 value of 8.25% and the figure a decade earlier of 3.00%. It averaged 4.18% over the last decade. 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 holds rates in September
Latest bank decision: At its September meeting, the Central Bank of Chile held its monetary policy interest rate at 4.75%, following 650 basis points of cuts from mid-2023 to July 2025.
Higher-than-expected core price pressures drive hold: The Central Bank likely decided to pause its easing cycle due to higher-than-expected recent core inflation, and upward revisions to core inflation forecasts for the coming year. Moreover, the domestic economy was stronger than expected in Q2, and salaries continue to rise robustly.
Further cuts a possibility: The Central Bank suggested it wouldn’t cut rates until it had gathered more information on the persistence of inflation. As a result, there are upside risks to our current Consensus of more monetary easing by the end of 2025.
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 30 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.
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