Interest Rate in Chile
Chile - Interest Rate
Central Bank resumes tightening cycle in January
At its 30 January monetary policy meeting, the board of the Central Bank of Chile (BCCh) voted unanimously to hike the key policy rate from 2.75% to 3.00%. The decision came in line with analysts’ expectations and was driven by upbeat domestic activity in the fourth quarter.
Although inflation closed the year further below the midpoint of the Bank’s 2.0%–4.0% target rate (December: 2.6%), an acceleration in non-mining activity prompted the board to resume its tightening cycle after a pause in December. The BCCh remarked that regained dynamism in investment-related sectors, particularly in capital goods imports and construction, allows for a “gradual withdrawal” of monetary stimulus. The board’s tightening came against the backdrop of a relaxation in monetary policy in the world’s biggest economies.
In its communiqué, the BCCh signaled that further policy tightening was still on the cards, albeit at a more gradual pace as the economy adjusts to a more volatile global economy. The board will pay heed to changes in monetary policy abroad, as it moves towards a neutral policy that encourages inflation to converge at the target rate of 3.0%. Analysts expect the board to keep rates unchanged at the next monetary policy meeting scheduled for 29 March.
The BCCh sees inflation ending 2019 at 2.8 and 2020 at 3.0%. LatinFocus Consensus Forecast panelists expect the policy rate to increase gradually going forward, ending 2019 at 3.61% and 2020 at 4.074.07%.
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||4.27||-0.44 %||Mar 11|
|Exchange Rate||670.7||0.05 %||Mar 11|
|Stock Market||26,808||-0.67 %||Mar 11|
Get a sample report showing our regional, country and commodities data and analysis.
Start Your Free 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.
March 18, 2019
According to comprehensive data released by the Central Bank, the economy grew 3.6% year-on-year in the fourth quarter, accelerating from a revised 2.6% increase in the third quarter (previously reported: +2.8% yoy).
March 7, 2019
The Adimark GfK consumer confidence index edged down to 46.3 points in February, from 47.0 points in January.
March 5, 2019
According to the IMACEC index, economic activity rose 2.4% year-on-year in January, moderating from December’s 2.6% rise.
March 1, 2019
The business confidence index (IMCE, Indicador Mensual de Confianza Empresarial) published by ICARE and the Universidad Adolfo Ibáñez rose from 50.7 points in January to 54.2 in February, thus moving further above the crucial 50-point threshold that separates optimism from pessimism among businesses.
February 27, 2019
Copper prices rose in February after a tepid increase in January.