The Central Bank of Chile raised its benchmark interest rate by 25 bps to 3.00 percent on January 30th 2019, as widely expected. The decision was unanimous. Policymakers said that the decision considered the evolution of macroeconomic conditions and reaffirmed its commitment to conduct the monetary policy with flexibility so the inflation rate stands at 3 percent over the next two years. Interest Rate in Chile averaged 4.64 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 3.50 percent in 2020, according to our econometric models.

Chile Interest Rate
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Calendar GMT Actual Previous Consensus TEForecast
2018-09-04 09:00 PM Interest Rate Decision 2.5% 2.5% 2.5% 2.50%
2018-10-18 09:00 PM Interest Rate Decision 2.75% 2.5% 2.75% 2.75%
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% 3.0%
2019-04-15 11:30 AM Monetary Policy Meeting Minutes
2019-05-09 09:00 PM Interest Rate Decision 3.0%



Chile Hikes Interest Rate to 3%

The Central Bank of Chile raised its benchmark interest rate by 25 bps to 3.00 percent on January 30th 2019, as widely expected. The decision was unanimous. Policymakers said that the decision considered the evolution of macroeconomic conditions and reaffirmed its commitment to conduct the monetary policy with flexibility so the inflation rate stands at 3 percent over the next two years.

Statement from the Central Bank of Chile:

Internationally, incoming data point to growth moderating in the world economy beyond forecasts, accompanied by volatile financial markets and persistent political and economic risks. In the developed world, economic expectations have deteriorated. Conjunctural Eurozone growth data again brought negative surprises, while China's activity indicators moderated further, prompting its authorities to announce new stimuli. Meanwhile, recent US data remains dynamic. Inflation slowed in most countries as a result of the drop in oil prices in the last quarter of 2018. 

In this context, the main central banks have signaled a more gradual normalization of their monetary policies, which market prices have internalized. Long-term interest rates have fallen in several economies, stock markets have risen from end-of-2018 levels and capital flows have returned to emerging countries. The oil price has recovered partially in 2019 so far, while copper has fluctuated around USD 2.7 per pound. 

Regarding local financial conditions, the peso continued to fluctuate significantly, but its current value in terms of US dollars shows little variation from the last Meeting. This, in a context in which the local risk indicators remain contained, interest rates have fallen slightly to converge with the global trend, while the stock market (IPSA) has aligned with the increases in Latin American stock markets. In the credit market, annual credit growth accelerated towards the end of 2018, especially in consumer and commercial loans. Interest rates remain low from a historical perspective.

December’s monthly inflation was negative (-0.1%), affected mainly by a drop in the more volatile items (i.e. energy and foodstuffs). With this, in y-o-y terms, CPI inflation was 2.6% and for CPIEFE was 2.3%, both figures slightly below the December Report’s estimates. Those prices most sensitive to the activity gap, including unregulated services in the CPIEFE, continued to rise steadily. Inflation expectations for December 2019 declined to 2.8%, while expectations two years out remain around 3%.

The Board’s decision considered that the evolution of macroeconomic conditions continues to warrant a gradual withdrawal of the monetary stimulus, in line with what was foreseen in the last Monetary Policy Report. At the same time, it reiterated that it will proceed with this process gradually and cautiously. In particular, the next Monetary Policy Report will pay special attention to the evolution of the international scenario and its implications for the convergence of inflation to the target. Accordingly, the Board reaffirms its commitment 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
1/31/2019 10:54:55 AM



Chile Money Last Previous Highest Lowest Unit
Interest Rate 3.00 3.00 14.00 0.50 percent [+]
Interbank Rate 3.20 3.18 7.45 0.06 percent [+]
Money Supply M1 34959.16 35512.97 35512.97 81.57 CLP Billion [+]
Money Supply M2 135764.96 136936.48 137118.52 753.65 CLP Billion [+]
Money Supply M3 235317.22 234936.86 235317.22 1231.77 CLP Billion [+]
Foreign Exchange Reserves 38714.20 38926.60 42302.70 1998.90 USD Million [+]
Banks Balance Sheet 145066.00 141993.00 145066.00 19067.00 CLP Million [+]
Loans to Private Sector 100344.00 101085.00 101085.00 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 26574.00 25181.00 27557.00 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 March 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 65.76 Mar/19
Turkey 24.00 Mar/19
Mexico 8.25 Feb/19
Russia 7.75 Mar/19
South Africa 6.75 Feb/19
Brazil 6.50 Mar/19
India 6.25 Feb/19
Indonesia 6.00 Mar/19
China 4.35 Feb/19
Saudi Arabia 3.00 Feb/19
United States 2.50 Mar/19
Canada 1.75 Mar/19
South Korea 1.75 Feb/19
Singapore 1.66 Feb/19
Australia 1.50 Mar/19
United Kingdom 0.75 Mar/19
Euro Area 0.00 Mar/19
France 0.00 Mar/19
Germany 0.00 Mar/19
Italy 0.00 Mar/19
Netherlands 0.00 Mar/19
Spain 0.00 Mar/19
Japan -0.10 Mar/19
Switzerland -0.75 Mar/19


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