*Chile’s central bank (BCCh) has announced it is cutting interest rates by 50 basis points to 6%. This follows a reduction of 75 basis points in April. The BCCh began reducing the benchmark interest rate in July last year, after maintaining a rate of 11.25% since October 2022. In a statement, BCCh notes that Chile’s economy has evolved in line with forecasts made in its previous (March) monetary policy meeting, with GDP growing 2.3% year-on-year in the first quarter of 2024. It also states that inflation has developed in line with forecasts in March and April. The BCCh expects that further cuts will be applied to the interest rate, adding that “the magnitude and timing” of such reductions “will depend on the evolution of the macroeconomic scenario and its implications for the inflation trajectory”.
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- Publishing note