Skyline in Chile

Chile Interest Rate

Chile Interest Rate

Monetary Policy Rate in Chile

Chile's central bank gradually lowered interest rates during the 2010s in response to moderate economic growth and inflation. 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.

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 2014 to 2023.
Source: Central Bank of Chile.

Chile Interest Rate Data

2018 2019 2020 2021 2022
Monetary Policy Rate (%, eop) 2.75 1.75 0.50 4.00 11.25
10-Year Bond Yield (%, eop) 4.21 3.14 2.65 5.65 5.32

Central Bank cuts rates in January; signals further cuts ahead

On 31 January, the board of the Central Bank of Chile (BCCH) cut the monetary policy rate (MPR) from 8.25% to 7.25%.

The decision to continue to cut rates was partly due to sustained falls in headline and core inflation in recent months. In particular, the Bank commented that both headline and core price pressures undershot its expectations in December. Moreover, the Bank judged that inflation would return to its 3.0% target quicker than it had previously anticipated, and mentioned that market inflation expectations were well anchored at the target.

The Central Bank made clear that interest rates would be cut further in the coming months. This is in line with our panelists’ projections: Our Consensus is for around 275 basis points of additional cuts by end-2024, with a spread among panelists’ end-2024 forecasts of 200 basis points.

On the outlook, Itaú Unibanco analysts said: “With inflation expectations anchored, inflation to reach the 3% target ahead of schedule, the positive output gap having closed, monetary policy must quickly fall towards neutral to avoid the risks of overtightening. In the short-term we expect the BCCH to continue to swiftly cut rates, and more significantly moderate the pace of cuts towards the second quarter. We expect a yearend rate of 4.5%.” Credicorp Capital analysts said: “The inflation convergence to the target could be reached as soon as 1Q24, with risks of inflation hovering below 3% for several quarters ahead. Whether this scenario materializes, we raise the risk of more aggressive cuts in the April meeting (125bp) and a higher likelihood of seeing the benchmark rate around its neutral level by the end of 3Q24.”

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 28 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

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