Chile: Central Bank of Chile holds rates in March
March hold priced in by markets: On 24 March, 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.
Risks skewed towards no further rate cuts: The Bank’s forward guidance was open-ended in light of high geopolitical uncertainty. Our Consensus is for the policy rate to end 2026 slightly below current levels, though risks are skewed towards no more monetary easing due to an expected energy-price-driven rise in inflation ahead.