Latest bank decision: At its meeting on 27 May, the Central Bank decided to hold the Official Cash Rate (OCR)...
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 2014 to 2025.
Source: Macrobond.
Chile Interest Rate Data
| 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|
| Policy Interest Rate (%, eop) | 4.00 | 11.25 | 8.25 | 5.00 | 4.52 |
| 10-Year Bond Yield (%, eop) | 5.65 | 5.32 | 5.30 | 5.95 | 5.41 |
Central Bank of Chile holds rates in April
March hold priced in by markets: On 28 April, the Central Bank of Chile stood pat, leaving its policy rate at 4.50%. The hold matched market expectations and kept rates at their lowest level since Q1 2022.
Bank takes wait and see approach: With inflation within the Bank’s 2.0–4.0% target range, economic activity expanding and war in the Middle East increasing uncertainty over the inflation outlook, the Bank opted for a cautious approach by keeping rates stable.
Rates likely to stay on hold: The Bank’s forward guidance was open-ended in light of high geopolitical uncertainty. Most panelists see the policy rate ending 2026 at its current level, with some seeing cuts and some hikes.
Panelist insight: Goldman Sachs’ Sergio Armella said: “We still believe that the MPC is inclined to look through the supply-driven oil shock, but the bar for hikes is not high given the only marginally restrictive policy stance. A key driver for monetary policy, in our view, will be whether spillovers from the oil shock to core inflation broaden beyond expectations. While near-term inflation expectations have risen, we expect them to improve as we move away from the large increase in fuel prices as annual inflation readings are poised to benefit from large base effects in 2026.”
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 37 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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