The Central Bank of Chile has decided to keep its key interest rate at 4,5%. The decision was unanimous and matched market expectations.
The rate has remained unchanged since December last year. In its statement, the bank's board emphasized that it will make decisions as needed to achieve the inflation target of 3% within a two-year horizon.
The regulator noted increased uncertainty in the macroeconomic situation. Particular attention is paid to risks associated with the conflict in the Middle East, which have intensified recently.
The country's economy continues to show weakness. The bank warned that the period of local economic downturn may not be over yet.
Inflation in August rose to 4,1% year-on-year. This figure exceeded the bank's target range of 2–4%.
On Wednesday, the central bank will publish an updated Monetary Policy Report with new macroeconomic forecasts. How will the situation develop further?
Market operators and analysts expect the rate to remain at its current level for the next two years. Decisions will be made at each meeting depending on incoming data.
