The Central Bank of Chile held its monetary policy rate at 4.5% on Tuesday, extending an already lengthy pause as headline inflation continued to run above the 3% target. The decision was taken unanimously by all members of the Board and marked the fifth consecutive meeting at which policy has been left unchanged, according to the statement published on the central bank's website.
In the accompanying statement the Board said the future evolution of the policy rate would be evaluated meeting by meeting, depending on how events unfold. The decision was broadly in line with what analysts and market pricing had signalled ahead of the meeting.
EXTENDED PAUSE AS INFLATION REMAINS ABOVE TARGET
The policy rate has been at 4.5% since December 2025.
The statement said annual CPI inflation was 4.3% in June, above the projections of the latest Monetary Policy Report and market expectations, driven by core inflation, which rose more than expected to 3.4%. It reiterated its commitment to returning inflation to the 3% target over a two-year horizon.
MIDDLE EAST RISKS
The Board said the international outlook continued to be marked by volatility linked to the conflict between the United States and Iran, with renewed attacks pushing oil to around US$100 a barrel before the rise moderated.
The statement said the macroeconomic scenario remained subject to greater-than-usual uncertainty, highlighting the resurgence of risks associated with the conflict in the Middle East.
The Board said it would need to constantly evaluate alternative scenarios in which the global and local economy could produce inflation paths different from those expected and require changes in monetary policy.
The statement said two-year-ahead inflation expectations in both the Economic Expectations Survey and the Financial Traders Survey stood at 3%.
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