*Chile’s central bank (BCCh) has maintained its benchmark interest rate at 5% for a third consecutive meeting. A BCCh press release announcing the decision, which was made unanimously, notes that uncertainty about the global economic outlook has “increased considerably” since the previous meeting in March, “particularly following the US tariff announcements in early April and subsequent developments”. While the BCCh states that the local market has been affected by this international volatility, it notes that local financial conditions have improved “with a decrease in short and long-term interest rates, an appreciation of the peso and a rise in the stock market”, as well as greater recent dynamism in economic activity indicators “due to the performance of supply sectors associated with exports, accompanied by a gradual recovery of domestic demand”. The BCCh adds that a 0.1% contraction in the monthly index of economic activity (Imacec) in February was less than expected, while annual inflation of 4.9% in March was in line with central bank forecasts. The BCCh said it will make its next interest rate decision in May, based on the evolution of the macroeconomic scenario and its implications for inflation. It reaffirmed its commitment to conducting monetary policy with flexibility, so that projected inflation will be at 3% over the two-year horizon.
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