The Central Bank of Chile held its benchmark interest rate at 1.75 percent in its December 4th 2019 meeting. The unanimously-voted move follows three rate cuts in the year that brought borrowing costs to its lowest since 2010, amid violent social unrest that significantly dented growth prospects, triggered currency depreciation and threatened price stability ahead. The Committee noted an increase uncertainty in the future evolution of the macroeconomic scenario and added that the last package of reactivation measures announced by the Government entails a major increase in fiscal spending for the next year. Policymakers expects that the monetary policy rate will be kept at its current level over the coming months in accordance to achieve the inflation target and in a context of increased fiscal impulse and forex intervention. The Committee reaffirmed its commitment to conduct monetary policy with flexibility, so that projected inflation stands at 3% in the two-year horizon.
Interest Rate in Chile averaged 4.58 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. This page provides - Chile Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. source: Banco Central de Chile
Interest Rate in Chile is expected to be 1.75 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 1.75 in 12 months time. In the long-term, the Chile Interest Rate is projected to trend around 2.00 percent in 2020, according to our econometric models.