The Central Bank of Chile held its benchmark interest rate at 3 percent at its May 9th 2019 meeting, as widely expected. The decision was unanimous. Policymakers said that the inflation outlook requires keeping the monetary stimulus for an extended period of time. The Committee added that they will continue to conduct monetary policy with flexibility so the inflation rate stands at 3 percent over the next two years. Interest Rate in Chile averaged 4.62 percent from 1995 until 2019, reaching an all time high of 14 percent in September of 1998 and a record low of 0.50 percent in July of 2009.

Interest Rate in Chile is expected to be 3.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Chile to stand at 3.25 in 12 months time. In the long-term, the Chile Interest Rate is projected to trend around 3.75 percent in 2020, according to our econometric models.

Chile Interest Rate
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Calendar GMT Actual Previous Consensus TEForecast
2018-12-04 09:00 PM Interest Rate Decision 2.75% 2.75% 2.75% 2.75%
2019-01-30 09:00 PM Interest Rate Decision 3% 2.75% 3.0% 3.0%
2019-03-29 09:00 PM Interest Rate Decision 3% 3% 3% 3.0%
2019-05-09 10:00 PM Interest Rate Decision 3% 3% 3% 3.0%
2019-05-27 11:30 AM Monetary Policy Meeting Minutes
2019-06-07 09:00 PM Interest Rate Decision 3% 3.0%
2019-06-24 11:30 AM Monetary Policy Meeting Minutes



Chile Holds Interest Rate at 3%

The Central Bank of Chile held its benchmark interest rate at 3 percent at its May 9th 2019 meeting, as widely expected. The decision was unanimous. Policymakers said that the inflation outlook requires keeping the monetary stimulus for an extended period of time. The Committee added that they will continue to conduct monetary policy with flexibility so the inflation rate stands at 3 percent over the next two years.

Statement by the Central Bank of Chile:

The local financial market has seen a decline in the stock market and a depreciation of the peso, in line with the global trends of recent days. Medium- and long-term interest rates have shown no major movements in the most recent past, despite some decline after the last Meeting. Credit expansion, costs and lending standards, according to the March Bank Lending Survey, present no big change, while demand for credit is perceived as having lost some dynamism in the segments of consumers and large companies.

Preliminary first-quarter data suggest that GDP grew less than forecast in the March Monetary Policy Report. This would respond to reduced mining activity and the performance of some of the more volatile sectors. Conversely, all other sectors have performed in line with expectations, particularly those linked to services and investment. About the latter, although imports of capital goods have shown greater volatility, the outlook remains favorable as can be derived from the evolution of construction activity and the upward revision of the Capital Goods Corporation's latest survey. On the consumption side, there are no signs of a significant switch in the trend, as the slowdown in durable goods consumption is offset by the strengthening of services. In the labor market, the various sources of information point to stronger growth in salaried employment. Meanwhile, the unemployment rate remains around 7% and nominal wages accelerated in annual terms, reflecting the rise in the minimum wage. 

Annual CPI inflation—measured with the 2018=100 base benchmark series—increased with respect to the beginning of the year, standing at 2% in April. This responds to a large extent to the higher incidence of foodstuffs and fuels. Meanwhile, the CPIEFE has continued to fluctuate around 2% y-o-y. Private inflation expectations available at the time of the Meeting show slight changes. For this year’s end and one year ahead, they stand somewhat below 3% annually, where they are expected to remain in the two-year horizon. 

The Board’s decision considered that information accumulated in the last month does not modify significantly from the evaluation contained in the March Report. Thus, it estimates that the lower level and outlook of inflation require keeping the monetary stimulus still for an extended period of time. The course of the MPR normalization necessary for the convergence of inflation within the policy horizon will be subject to a new appraisal in the June Report. Accordingly, the Board reiterates its will to conduct monetary policy with flexibility, so that projected inflation stands at 3% over the two-year horizon.



Central Bank of Chile | Mario | mario@tradingeconomics.com
5/10/2019 9:40:38 AM



Chile Money Last Previous Highest Lowest Unit
Interest Rate 3.00 3.00 14.00 0.50 percent [+]
Interbank Rate 3.15 3.15 7.45 0.06 percent [+]
Money Supply M1 35822.97 35249.05 35822.97 81.57 CLP Billion [+]
Money Supply M2 138935.73 136888.14 138935.73 753.65 CLP Billion [+]
Money Supply M3 239129.05 236649.13 239129.05 1231.77 CLP Billion [+]
Foreign Exchange Reserves 38829.80 39711.80 42302.70 1998.90 USD Million [+]
Banks Balance Sheet 145090.00 144848.00 146379.00 19067.00 CLP Million [+]
Loans to Private Sector 102044.00 100886.00 102044.00 15521.00 CLP Billion [+]
Deposit Interest Rate 2.90 3.80 48.68 1.75 percent [+]
Private Debt to GDP 189.10 196.80 198.70 137.60 percent [+]
Central Bank Balance Sheet 25901.00 28048.00 28048.00 10730.92 CLP Million [+]


Chile Interest Rate

In Chile, interest rate decisions are taken by The Central Bank of Chile (Banco Central de Chile). The official interest rate is monetary policy interest rate (PDBC Pagarés Descontables del Banco Central) which is overnight interbank interest rate. This page provides - Chile Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Chile Interest Rate - actual data, historical chart and calendar of releases - was last updated on May of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
3.00 3.00 14.00 0.50 1995 - 2019 percent Daily




Country Last Previous
Argentina 71.57 May/19
Turkey 24.00 Apr/19
Mexico 8.25 May/19
Russia 7.75 Apr/19
South Africa 6.75 Apr/19
Brazil 6.50 May/19
India 6.00 Apr/19
Indonesia 6.00 May/19
China 4.35 Apr/19
Saudi Arabia 3.00 Apr/19
United States 2.50 May/19
Singapore 2.24 Mar/19
Canada 1.75 Apr/19
South Korea 1.75 Apr/19
Australia 1.50 May/19
United Kingdom 0.75 May/19
Euro Area 0.00 Apr/19
France 0.00 Apr/19
Germany 0.00 Apr/19
Italy 0.00 Apr/19
Netherlands 0.00 Apr/19
Spain 0.00 Apr/19
Japan -0.10 Apr/19
Switzerland -0.75 Apr/19


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