Chile Holds Interest Rate Steady

The Central Bank of Chile maintained its policy rate at 4.5% in a unanimous March decision, citing a significant increase in uncertainty regarding the global economic outlook due to the war in the Middle East. The board noted that an initial external boost early in the year has been overshadowed by rising oil prices around $100 per barrel and tighter global financial conditions, while copper prices have decreased from their recent peaks despite remaining above previous IPoM forecasts. Domestic activity closed 2025 with 2.5% growth, though January Imacec performance was lower than expected due to supply factors in mining and agribusiness while private consumption and investment remained dynamic. The labour market showed little change with the unemployment rate steady and job creation remaining limited. Inflation showed a reduction with headline inflation at 2.4% and core inflation at 3.3% in February, though short-term expectations have risen relevantly due to fuel prices.