The Central Bank of Chile kept its benchmark interest rate unchanged at 2.50 percent at its July 18th 2019 meeting. Policymakers noted higher risks associated with the timely convergence of inflation to the target over the policy horizon, mainly due to cost of services and surrounding the future evolution of activity and demand, amid external uncertainty. The Committee said that will extend the current monetary stimulus, if necessary, and added that they will continue to conduct monetary policy with flexibility, so that projected inflation stands at 3 percent in the two-year horizon. Interest Rate in Chile averaged 4.61 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 2.50 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 2.25 in 12 months time. In the long-term, the Chile Interest Rate is projected to trend around 2.75 percent in 2020, according to our econometric models.

Chile Interest Rate
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Calendar GMT Actual Previous Consensus TEForecast
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%
2019-06-07 11:00 PM Interest Rate Decision 2.5% 3% 3% 3.0%
2019-07-18 10:00 PM Interest Rate Decision 2.5% 2.5% 2.5%
2019-08-02 11:30 AM Monetary Policy Meeting Minutes
2019-09-03 09:00 PM Interest Rate Decision 2.5% 2.5%
2019-09-23 11:30 AM Monetary Policy Meeting Minutes



Chile Keeps Interest Rate at 2.50%

The Central Bank of Chile kept its benchmark interest rate unchanged at 2.50 percent at its July 18th 2019 meeting. Policymakers noted higher risks associated with the timely convergence of inflation to the target over the policy horizon, mainly due to cost of services and surrounding the future evolution of activity and demand, amid external uncertainty. The Committee said that will extend the current monetary stimulus, if necessary, and added that they will continue to conduct monetary policy with flexibility, so that projected inflation stands at 3 percent in the two-year horizon.

Statement by the Central Bank of Chile:

Regarding activity and demand, the information at hand for the second quarter points to somewhat less than expected dynamism, partly due to poor performance of mining and some specific factors. Some qualitative background indicators suggest that additional downside risks may be expected for the coming months. About consumption, imports of consumer goods have slowed down and consumers’ expectations have deteriorated significantly (IPEC). The labor market shows no significant changes, the unemployment rate remains around 7% and various indicators point to increasing job creation. On the investment side, the favorable evolution of some elements related to business services contrasts with the moderation of sales of construction materials and business expectations (IMCE), which are still slightly below their neutral levels. On the other hand, exports contracted beyond expectations, partly reflecting the weakness of some trading partners. In this context, the growth expectations contained in the Economic Expectations Survey (EES) decreased for both this year and next.

The annual CPI variation remained at 2.3% in June, while core inflation (CPIEFE) continued to hover around 2% annually. Among core inflation components, it is worth noting the widespread drop in the prices of services, more closely linked to capacity gaps and labor costs. On the contrary, the goods component of the CPIEFE posted unexpected growth, although largely driven by tourist packages. As for inflation expectations, there is a decrease for both the end of 2019 and one year ahead. For two years ahead, while the EES median remained at 3%, the median of the Financial Brokers Survey dropped to 2.8%.

The Board considers that information accumulated since the publication of the last Monetary Policy Report reflects increased risks associated with the timely convergence of inflation to the target over the policy horizon. In particular, due to lower services inflation figures, whose persistence is high relative to other CPI components and the risks surrounding the future evolution of activity and demand, in a context of high external uncertainty. In case these tendencies persist, the Board estimates that it will be necessary to extend the current monetary stimulus, in a magnitude to be assessed in the next Monetary Policy Report. Accordingly, it reiterates its will to conduct monetary policy with flexibility, so that projected inflation stands at 3% in the twoyear horizon.


Central Bank of Chile |Stefanie Moya | stefanie.moya@tradingeconomics.com
7/19/2019 9:29:19 AM



Chile Money Last Previous Highest Lowest Unit
Interest Rate 2.50 2.50 14.00 0.50 percent [+]
Interbank Rate 2.61 2.61 7.45 0.06 percent [+]
Money Supply M1 36763.55 36486.16 36763.55 81.57 CLP Billion [+]
Money Supply M2 140470.10 139862.71 140470.10 753.65 CLP Billion [+]
Money Supply M3 244953.56 241670.92 244953.56 1231.77 CLP Billion [+]
Foreign Exchange Reserves 39443.50 38230.60 42302.70 1998.90 USD Million [+]
Banks Balance Sheet 147450.00 146626.00 147450.00 19067.00 CLP Million [+]
Loans to Private Sector 104653.00 102593.00 104653.00 15521.00 CLP Billion [+]
Deposit Interest Rate 2.70 2.90 48.68 1.75 percent [+]
Private Debt to GDP 189.10 196.80 198.70 137.60 percent [+]
Central Bank Balance Sheet 27623.00 26831.00 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 July of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
2.50 2.50 14.00 0.50 1995 - 2019 percent Daily




Country Last Previous
Argentina 58.71 Jul/19
Turkey 24.00 Jun/19
Mexico 8.25 Jul/19
Russia 7.50 Jun/19
Brazil 6.50 Jun/19
South Africa 6.50 Jul/19
India 5.75 Jul/19
Indonesia 5.75 Jul/19
China 4.35 Jun/19
Saudi Arabia 3.00 Jun/19
United States 2.50 Jun/19
Canada 1.75 Jul/19
Singapore 1.67 Jun/19
South Korea 1.50 Jul/19
Australia 1.00 Jul/19
United Kingdom 0.75 Jun/19
Euro Area 0.00 Jun/19
France 0.00 Jun/19
Germany 0.00 Jun/19
Italy 0.00 Jun/19
Netherlands 0.00 Jun/19
Spain 0.00 Jun/19
Japan -0.10 Jun/19
Switzerland -0.75 Jun/19


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