Interest Rate in Chile
Chile - Interest Rate
Central Bank keeps the key policy rate stable in December
At its monetary policy meeting on 5 December, the board of the Central Bank of Chile (BCC) voted unanimously to hold the key policy rate unchanged at 2.75%. The Bank’s decision was in line with market expectations and came against the backdrop of slower growth in the third quarter and increased downward pressures on inflation.
Inflationary pressures moderated in the weeks preceding the Bank’s meeting, largely on the back of lower gasoline prices amid tanking global oil prices. Inflation slipped marginally below the midpoint of the Bank’s 2.0%–4.0% target range in October, to 2.9% (September: 3.1%), while core inflation—which excludes volatile components such as food and energy—also slowed. Meanwhile, despite slightly lower short-term inflation expectations due to plunging oil prices, the medium-term expectations of household inflation were broadly stable and remained anchored around the Bank’s target band.
In its communiqué the BCC also commented upon the real sector’s weak performance in Q3. The slowdown in Q3 was sharper than expected due to weak performances in the mining and manufacturing sectors, supporting the Bank’s decision to refrain from tightening its monetary policy stance in the last meeting of the year. Nevertheless, the Bank remained hawkish to ensure a smooth transition towards a neutral monetary policy while keeping inflation within the target range. In the statement the BCC described to its current monetary policy as “highly expansionary”, suggesting that a rate hike in the first quarter of 2019 is extremely likely.
The next monetary policy meeting is scheduled for 30 January.
LatinFocus Consensus Forecast panelists expect the rate to increase gradually going forward, ending 2019 at 3.66% and 2020 at 4.18%.
Chile - Interest Rate Data
|Policy Interest Rate (%)||4.50||3.00||3.50||3.50||2.50|
5 years of economic forecasts for more than 30 economic indicators.
Chile Interest Rate Chart
|Bond Yield||4.46||-0.44 %||Jan 14|
|Exchange Rate||673.7||0.05 %||Jan 14|
|Stock Market||27,065||-0.67 %||Jan 14|
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January 10, 2019
Copper prices fell in recent weeks after a soft recovery in the October–November period.
January 9, 2019
According to the National Statistical Institute (INE), consumer prices decreased by 0.1% month-on-month in December, after flat growth in November.
January 7, 2019
According to the IMACEC monthly economic activity index , economic activity rose 3.1% year-on-year in November, decelerating from the 4.2% increase logged in October.
January 7, 2019
The Adimark GfK consumer confidence index (IPEC, Índice de Percepción de la Economía) inched down to 44.6 points in December, from 44.9 points in November, the lowest reading in 16 months.
January 2, 2019
The business confidence index (IMCE, Indicador Mensual de Confianza Empresarial) published by ICARE and the Universidad Adolfo Ibáñez inched down from 49.0 points in November to 48.8 points in December, staying below the crucial 50-point threshold that separates pessimism from optimism among businesses.