Chile Central Bank maintains interest rate at 4.5%

The Central Bank of Chile has unanimously decided to maintain its monetary policy rate at 4.5%. This decision comes amid a period of heightened economic uncertainty driven by international tensions, specifically the conflict between the United States and Iran, which has pushed oil prices toward $100 per barrel.

Chilean economic indicators show signs of weakness. Analysts have significantly lowered GDP growth projections for 2026 to between 0.25% and 0.75%. Additionally, monthly inflation in August rose by 0.6%, doubling market expectations and keeping the annual rate at 4.1%, which remains above the bank's 3% target.

The labor market is also facing challenges, with unemployment reaching 9.5%. The Central Bank attributes this high unemployment to rising labor costs, increased automation, and weakened domestic demand. While copper prices remain high, the overall economic outlook is characterized by stagnant growth and persistent inflationary risks.