17.06.202522:09:43UTC+00Chile Keeps Interest Rate on Hold

The Central Bank of Chile, in its June 2025 session, opted to maintain the monetary policy rate at 5%, a decision reached unanimously. This move occurs within a challenging global landscape characterized by ongoing trade disputes, decelerating growth in the United States, and increased geopolitical tensions stemming from the Middle East conflict. Although financial markets have shown signs of stabilization and copper prices have experienced an upswing, the recent intensification of hostilities has led to a spike in oil prices. On the domestic front, economic performance in the first quarter surpassed expectations, buoyed by strong export activity and robust service sector performance. However, the labor market remains sluggish, with job creation slow and unemployment rates climbing. Inflation figures have shown some improvement, with the headline Consumer Price Index (CPI) and core CPI softening to 4.4% and 3.6% respectively in May, and medium-term inflation expectations holding steady at 3%. The central bank emphasized that while risks have lessened, global uncertainty could still impede inflation reaching its target. Going forward, the policymakers indicated that if current projections persist, there is potential for the rate to gradually shift back to a neutral range in upcoming quarters.