The Central Bank of Chile held its benchmark interest rate at 3 percent during its March meeting, as widely expected, saying rates are expected to remain at current levels for a longer time amid low inflation expectations and global growth slowdown. Interest Rate in Chile averaged 4.63 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 3.75 percent in 2020, according to our econometric models.

Chile Interest Rate
Forecast Data Chart
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Calendar GMT Actual Previous Consensus TEForecast
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% 3% 3.0%
2019-05-09 09:00 PM Interest Rate Decision 3% 3.0%
2019-05-27 11:30 AM Monetary Policy Meeting Minutes
2019-06-07 09:00 PM Interest Rate Decision 3.0%

Chile Holds Policy Interest Rate at 3%

The Central Bank of Chile held its benchmark interest rate at 3 percent during its March meeting, as widely expected, saying rates are expected to remain at current levels for a longer time amid low inflation expectations and global growth slowdown.

Excerpts from the Central Bank of Chile's press release:

On the external front, since the previous meeting growth forecasts for the main economies have continued to be downgraded. In this scenario, the Federal Reserve and the European Central Bank have reinforced their stance for a more expansive monetary policy while the Chinese authorities have added new stimulus measures. In addition to adjustments to its balance sheet, the Federal Reserve also announced that it would not raise the federal funds rate this year and that the direction of its next move cannot be foreseen with clarity. Even though all these announcements have significantly reduced long term interest rates, tensions in international financial markets have reappeared. The yield curve has inverted, the dollar has appreciated globally and news fears about the performance of some emerging economies whose economic fundamentals are perceived as weak have arisen. Commodity prices have been less affected. Specifically, the current price of copper is still above the one observed at the time of January’s meeting.

Regarding local financial conditions, the peso, as the majority of emerging market currencies, experienced significant fluctuations since the previous meeting. Measures of domestic financial risk remained contained. Aligned with global trends, the stock market and interest rates fell. In the local bank credit market, loans continued growing in real terms while lending rates remain low in historical perspective.

The annual growth of the CPI – according to the base 2018=100 reference series- is at 1,7% in February (CPIEFE: 2%), below what was forecasted in the last Monetary Policy Report. Beyond the direct impact of the new CPI basket and methodology, a number of macroeconomic phenomena seem to explain this difference. A lower than expected exchange rate pass-through and more competition in some markets are among them. An evaluation that capacity slack is bigger than previous estimations, what to a significant extent appears to be related to the effects of immigration in the labor force, is another factor. In the last months, private sector inflation expectations for the short term have been reduced while the ones for December 2019 have seen a smaller reduction. At the two-year horizon, they are around 3%.

The Board’s decision considered that, according to the analysis in the Monetary Policy Report and the recent data, the lower level of inflation and its perspectives, require keeping the monetary stimulus for a longer time. Notwithstanding, it still estimates that towards the medium term it will be necessary to resume the normalization of the monetary policy rate to assure the convergence of inflation in the policy horizon. With this, the Board reaffirms that it will proceed gradually and cautiously as has been stated and reiterates its commitment to conduct monetary policy with flexibility so that projected inflation stands at 3% over the two-year horizon.

Central Bank of Chile | Joana Ferreira |
3/29/2019 9:55:02 PM

Chile Money Last Previous Highest Lowest Unit
Interest Rate 3.00 3.00 14.00 0.50 percent [+]
Interbank Rate 3.16 3.16 7.45 0.06 percent [+]
Money Supply M1 35249.05 34959.16 35512.97 81.57 CLP Billion [+]
Money Supply M2 136888.14 135764.96 137118.52 753.65 CLP Billion [+]
Money Supply M3 236649.13 235317.22 236649.13 1231.77 CLP Billion [+]
Foreign Exchange Reserves 39711.80 38714.20 42302.70 1998.90 USD Million [+]
Banks Balance Sheet 145066.00 141993.00 145066.00 19067.00 CLP Million [+]
Loans to Private Sector 100886.00 100344.00 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 April 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 67.87 Apr/19
Turkey 24.00 Mar/19
Mexico 8.25 Mar/19
Russia 7.75 Mar/19
South Africa 6.75 Mar/19
Brazil 6.50 Mar/19
India 6.00 Apr/19
Indonesia 6.00 Mar/19
China 4.35 Mar/19
Saudi Arabia 3.00 Mar/19
United States 2.50 Mar/19
Singapore 2.24 Mar/19
Canada 1.75 Apr/19
South Korea 1.75 Apr/19
Australia 1.50 Apr/19
United Kingdom 0.75 Mar/19
Euro Area 0.00 Apr/19
France 0.00 Apr/19
Germany 0.00 Apr/19
Italy 0.00 Apr/19
Netherlands 0.00 Apr/19
Spain 0.00 Apr/19
Japan -0.10 Apr/19
Switzerland -0.75 Mar/19