Chile Interest Rate  1995-2018 | Data | Chart | Calendar | Forecast | News

The Central Bank of Chile raised its benchmark interest rate by 25 bps to 2.75 percent on 18 October 2018, matching market expectations. The decision was unanimous to ensure that inflation perspectives remain close to the target of 3% over the two-year horizon. Policymakers also mentioned that global and regional growth prospects deteriorated since the last minutes, while consumer prices jumped to a two-year high in September, underscoring rising yields. Inflation in Chile increased to 3.1 percent year-on-year in September of 2018 from 2.6 percent in the previous month. It was the highest inflation rate in two years. Interest Rate in Chile averaged 4.66 percent from 1995 until 2018, reaching an all time high of 14 percent in September of 1998 and a record low of 0.50 percent in July of 2009.

Chile Interest Rate
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Chile Raises Interest Rate by 25 Bps to 2.75%


The Central Bank of Chile raised its benchmark interest rate by 25 bps to 2.75 percent on 18 October 2018, matching market expectations. The decision was unanimous to ensure that inflation perspectives remain close to the target of 3% over the two-year horizon. Policymakers mentioned that global and regional growth prospects deteriorated since the last minutes, while consumer prices jumped to a two-year high in September, underscoring rising yields. Inflation in Chile increased to 3.1 percent year-on-year in September of 2018 from 2.6 percent in the previous month. It was the highest inflation rate in two years.

Statement by the Central Bank of Chile:

The external scenario continues to be characterized by financial markets' volatility, in a context of increasing divergence of the US economy from its peers in the developed world. At the same time, trade tensions have tended to focus on US-China relations. The Federal Reserve raised its benchmark rate again in September, while the market adjusted upward the expected trajectory for 2019 and 2020. This pushed long-term interest rates and risk aversion up in most of the countries, and the prices of riskier assets saw important corrections at the global level. In the Eurozone, Brexit negotiations and the definition of Italy’s fiscal deficit have created uncertainty in markets. In turn, China increased the monetary impulse once more, while its currency continued to depreciate against the dollar. Financial pressures on the rest of the emerging economies have tended to moderate. Commodity prices, although with important ups and downs, have seen increases in most products, copper included.

Chile's currency and stock prices, as in most emerging economies, saw significant fluctuations in recent weeks. In the domestic fixed-income market, worth noting was the rise of short-term rates in line with expectations about the MPR. Meanwhile, longterm rates have had limited increases, smaller than those of their external peers, in a context where the country’s financial risk indicators remained contained. Domestic credit continues to be characterized by low interest rates and stronger growth in commercial loans. The Bank Credit Survey for the third quarter of 2018 showed less restrictions for granting loans to households and big companies and stronger demand in the different segments, especially households, big companies and real estate.

Mining activity had some setbacks owing to some specific factors in some mines. The other sectors evolved as foreseen in the September Monetary Policy Report. Investment, especially in machinery and equipment, continues to lead the increase in domestic spending. The good performance of durable consumption also stands out. The review of complementary sources of information on the labor market -including administrative records- indicates increased dynamism of employment and salaries than suggested by the surveys. 

September's inflation (0.3%) was slightly below projections, affected by one-off developments, such as lower food inflation. With this, annual CPI inflation rose to 3.1% and CPIEFE inflation rose to 2.1%, with a sustained acceleration of the more outputgap sensitive prices, such as the non-regulated services in the CPIEFE basket. Private expectations for inflation remain around 3% for December of this year and for one and two years ahead.

The Board's decision considered that capacity gaps have narrowed in recent quarters and will continue to do so in line with forecasts in the Monetary Policy Report, taking both headline and core inflation near 3% in the coming quarters. In this scenario, the Board believes that the monetary stimulus should begin to be reduced to ensure that inflation perspectives remain close to the target. Bearing in mind that, in the baseline scenario of the Report, the monetary policy rate will converge to its neutral level in 2020, a timely start of this process allows proceeding with graduality and caution. This will provide the necessary room for the Board to define the appropriate pace of the monetary stimulus withdrawal. Thus, the Board reaffirms its commitment to conduct monetary policy with flexibility, so that projected inflation stands at 3% over the twoyear horizon.


Mario | mario@tradingeconomics.com
10/19/2018 9:14:56 AM



Calendar GMT Actual Previous Consensus TEForecast
2018-07-24 10:00 PM Interest Rate Decision 2.5% 2.5% 2.5% 2.50%
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%
2018-11-06 11:30 AM Monetary Policy Meeting Minutes
2018-12-04 09:00 PM Interest Rate Decision 2.75% 2.75%
2018-12-19 11:30 AM Monetary Policy Meeting Minutes


Chile Money Last Previous Highest Lowest Unit
Interest Rate 2.75 2.50 14.00 0.50 percent [+]
Interbank Rate 3.06 2.91 7.45 0.06 percent [+]
Money Supply M1 34099.78 33192.21 34099.78 81.57 CLP Billion [+]
Money Supply M2 133992.60 132701.93 133992.60 753.65 CLP Billion [+]
Money Supply M3 226311.37 218652.33 226311.37 1231.77 CLP Billion [+]
Foreign Exchange Reserves 37837.80 36781.20 42302.70 1998.90 USD Million [+]
Banks Balance Sheet 138801.00 138643.00 141167.00 19067.00 CLP Million [+]
Loans to Private Sector 98668.00 96597.00 98668.00 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 26833.00 26477.00 27125.00 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 October of 2018.

Actual Previous Highest Lowest Dates Unit Frequency
2.75 2.50 14.00 0.50 1995 - 2018 percent Daily




interest rate by Country
Country Last
Argentina 72.54 Oct/18
Turkey 24.00 Sep/18
Mexico 7.75 Oct/18
Russia 7.50 Sep/18
Brazil 6.50 Sep/18
India 6.50 Oct/18
South Africa 6.50 Sep/18
Indonesia 5.75 Sep/18
China 4.35 Sep/18
Saudi Arabia 2.75 Sep/18
United States 2.25 Sep/18
Australia 1.50 Oct/18
Canada 1.50 Sep/18
South Korea 1.50 Oct/18
Singapore 1.11 Sep/18
United Kingdom 0.75 Sep/18
Euro Area 0.00 Sep/18
France 0.00 Sep/18
Germany 0.00 Sep/18
Italy 0.00 Sep/18
Netherlands 0.00 Sep/18
Spain 0.00 Sep/18
Japan -0.10 Sep/18
Switzerland -0.75 Sep/18


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