28.04.202623:04:55UTC+00Chile Holds Interest Rates as Expected

In April 2026, the Central Bank of Chile unanimously decided to keep its policy rate unchanged at 4.5%, citing persistent global uncertainty stemming from the ongoing conflict in the Middle East. Although oil futures still suggest some easing ahead, there remains a risk that energy and other commodity prices will stay elevated, sustaining upward pressures on inflation. Even so, global financial conditions improved somewhat, with equity markets rebounding, currencies strengthening, and copper prices rising to around $6 per pound—above earlier projections.

On the domestic front, economic activity weakened. Non-mining GDP contracted 0.3% year-on-year in February, largely reflecting supply-side disruptions. Household consumption held broadly steady, but investment decelerated more than anticipated. Labor market conditions showed little change overall: unemployment remained stable and job creation was limited.

Inflation came in slightly above the Central Bank’s projections, with headline inflation at 2.8% and core inflation at 3.4%. Short-term inflation expectations edged higher, but medium-term expectations remain firmly anchored around the 3% target. Against this backdrop, the Central Bank reiterated that its monetary policy stance will remain cautious and guided by incoming data.