Chile’s central bank unanimously left its benchmark interest rate unchanged at 4.5% in September, pointing to elevated uncertainty stemming from the conflict in the Middle East, rising oil prices, and persistent global inflation risks. Oil prices have moved close to $100 per barrel, while copper has risen above $6.50 per pound.
On the domestic front, economic activity remained weaker than anticipated in the second quarter and at the start of the third, with a slowdown in internal demand, job losses, and a higher unemployment rate. Headline inflation rose to 4.1% in August, mainly due to more volatile components, while core inflation remained stable at 3.3%. Inflation expectations over a two‑year horizon continue to be anchored at 3%.
The central bank reiterated that monetary policy decisions will be made on a meeting‑by‑meeting basis. It emphasized that risks associated with the international conflict and the possibility of a more prolonged domestic slowdown warrant particularly close monitoring.