Interest Rate in Chile

Chile Interest Rate | Economic News & Forecasts

Chile - Interest Rate

Central Bank implements a further aggressive rate hike in October

At its 13 October meeting, the board of the Central Bank of Chile decided to hike the monetary policy rate by 125 basis points to 2.75%, a larger increase than markets were anticipating. Rates have now risen by 225 basis points so far this year.

A desire to rein in surging inflation was chiefly behind the Bank’s move. Inflation rose to a multi-year high in September, spurred by high international commodity prices and strong domestic demand, and is currently way above the Bank’s 3.0% target. Inflation expectations also rose as a result. Moreover, a potential fourth withdrawal from the country’s pension funds has the potential to further stoke price pressures. The decision to hike could have also had one eye on stabilizing the peso, which has tumbled in recent months amid intensifying political uncertainty.

The Central Bank sounded an even more hawkish tone than at its prior meeting, noting that the “policy rate will reach its neutral level sooner than foreseen in the September Report’s central scenario”. In September, the Bank had estimated a return to neutral territory (in the 3.25%–3.75% range) by the end of Q1 2022. As such, rates are set to continue increasing rapidly going forward, with more tightening likely at the next meeting on 14 December.

FocusEconomics Consensus Forecast panelists are still assessing the Bank’s latest move, with a new Consensus Forecast to be published on 9 November.

Chile - Interest Rate Data

2015   2016   2017   2018   2019  
Policy Interest Rate (%)3.50  3.50  2.50  2.75  1.75  

Sample Report

5 years of economic forecasts for more than 30 economic indicators.


Chile Interest Rate Chart

Chile Interest Rate

Chile Facts

Value Change Date
Bond Yield3.14-0.44 %Dec 30
Exchange Rate752.00.05 %Jan 01

Sample Report

Get a sample report showing our regional, country and commodities data and analysis.


Request a Trial

Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.

Sign Up

Economic News

Search form