LatinNews Daily - 24 March 2025

*Chile’s central bank (BCCh) has maintained its benchmark interest rate at 5% for a second consecutive meeting in a decision which was unanimous. A BCCh press release announcing the decision, which was expected by all analysts in a Bloomberg survey, highlights uncertainty regarding the perspectives for the global economy. It said that this has increased significantly since the previous meeting (which took place in late January) in the face of a rise in geopolitical risks, tariffs announced by the US government, as well as the response to tariffs by countries affected. The same BCCh statement also highlights that the Chilean peso has appreciated around 7%, influenced by the global weakening of the US dollar and improved prices of copper – a leading Chilean export. It notes that data from the end of 2024 and early 2025 indicate a more dynamic economy than expected and that Chile’s inflation rate, which was running at 4.7% year-on-year in February, was in line with that forecast in December’s Monetary Policy Report (IPoM). The BCCh reaffirmed its commitment to a flexible monetary policy, aiming to bring inflation down to 3% within two years.

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