The Central Bank of Chile maintains its interest rate in 5% by third consecutive meeting, in line with the expected

He Central Bank of Chile has announced at the last minute of Tuesday that maintains your interest rates without changes in 5% By third consecutive meeting, as expected. The decision has been made unanimously.

The entity made its last cut last December, when the types of 5% maintained at the meetings of January, March and April were reduced by 25 basic points.

Monetary policy declaration of the Central Bank of Chile

The uncertainty about the perspectives for the world economy has increased considerably since the previous meeting, particularly after the tariff announcements made by the United States in the beginning of April and their subsequent developments. This has led to a negative perception of the future performance of the US economy, together with more inflation perspectives. In the rest of the world, it is also perceived that these events and geopolitical conflicts will have negative growth effects. Regarding pressures on prices, they could be reduced in those countries that do not modify their commercial policy.

These ads were reflected in significant movements of global financial markets, observing high volatility episodes. It highlights the evolution of US long -term rates – which had important increases during April – and the dollar, which has not been the usual against events of global uncertainty in which it usually acts as a refuge. This differs with what happened in other economies, where falls from long -term rates are recorded in several of them and mixed movements of the coins. Regarding the bags, mixed movements are appreciated, highlighting the fall in the United States and the increase in Latin America. In this period, the price of copper (BML) has dropped around 3%, while the price of oil barrel (WTI-Born) has fallen about 12%.

The local market was also affected by international volatility. However, since the beginning of April, local financial conditions have improved, observing a decrease in short and long -term interest rates, an appreciation of weight and a stock market rise. Credit does not show great changes. The Banking Credit Survey (ECB) of the first quarter of 2025 continues to account for a weak demand in all portfolios, together with supply conditions without modifications.

The activity indicators continue to point to greater recent dynamism, in large part for the performance of supply sectors associated with exports, accompanied by a gradual recovery of domestic demand. In February, the IMACEC was reduced 0.1% per year (-0.5% monthly in the desestationalized series), very influenced by the calendar effect and the power supply of the end of that month. This contraction was somewhat less than the one planned. On the demand side, different indicators of private consumption and gross fixed capital formation continue to suggest a performance in accordance with the expected. The labor market continues to account for limited slacks.

In March, total inflation was in 4.9% per year, in line with the expected On the last iPom. The underlying inflation, on the other hand, was somewhat lower than the projected (3.7% per year), a difference that was explained both by the evolution of the prices of goods and services, although with the influence of specific items in the latter. Inflation expectations for two years have been adjusted to 3%, although some indicators remain over that value.

Changes in global commercial policy have deteriorated world growth prospects, while increasing uncertainty about their future evolution. The magnitude and temporality of these effects in the local economy are still uncertain. Regarding inflation, although it will continue at high levels immediately, its recent evolution and that of its main determinants reaffirm the convergence perspectives contained in the March IPOM. Yet, The need for caution is maintained.

The Council will evaluate the upcoming TPM movements, keeping in mind the evolution of the macroeconomic scenario and its implications for inflationary convergence. Besides, It reaffirms its commitment to conduct monetary policy with flexibility, so that projected inflation is 3% in the two -year horizon.

The minute corresponding to this monetary policy meeting will be published at 8:30 am on Thursday, May 15, 2025. The Next monetary policy meeting will take place on Tuesday, June 17, 2025. The respective statement will be published from 18 hours of that day.

Chilean weight reaction

The Chilean weight closed Tuesday’s session with losses after the USD/CLP reached a week’s maximum during the day. After closing Tuesday’s session at 945.69, winning 0.60% daily, the USD/CLP placed flat at the end of this level.