Archive · 18 Jun 2025
Chile Holds Rates Amid Middle East Concerns, Hints at Cuts
Chile's central bank decided to keep interest rates the same for now.
They're worried about what's happening in the world, especially the conflict in the Middle East, which could make things more expensive.
Even though prices are going up less than before, the bank is being careful.
They might lower interest rates later if everything stays calm, but for now, they're waiting to see what happens.
Chile's central bank held its key interest rate at 5%.
The bank cited global instability, particularly the Middle East conflict, as a concern.
The decision was in line with market expectations.
Inflation slowed to 4.4% in May, the lowest since November 2023.
The bank hinted at potential future rate cuts.
- Who
- Chile's central bank
- What
- The Central Bank of Chile held its key interest rate steady at 5%.
- When
- The decision was announced late Tuesday.
- Where
- Chile
- Why
- Due to global instability, especially the Middle East conflict.
Impact of external factors on rate decisions
Future interest rates
External Risk vs Economic Recovery
Impact of external factors on rate decisions
Continued global instability, and conflict in the Middle East might delay cuts.
Future interest rates
If external risks remain limited, easing cycle to resume.
- Interest Rate
- 5%
- Inflation Rate (May)
- 4.4%
- Economic Growth (April)
- 0.6% month-on-month
- Peso movement
- Up more than 5% year-to-date
