Chilean monetary policy and economic indicators

In early September 2026, Chilean financial markets experienced growth, with the IPSA index rising 0.63% to 11,386 points. This increase was driven by inflows into banking and retail sectors. At that time, market operators expected the benchmark interest rate to remain stable at 4.5%.

Following this period, the Banco Central de Chile unanimously decided on September 8 to maintain the monetary policy rate at 4.5%. This decision occurred despite August inflation rising 0.6%, which doubled market expectations and kept the annual rate at 4.1%, above the central bank’s 3% target.

The central bank also noted economic pressures from global tensions affecting oil prices and high copper prices. Additionally, unemployment reached 9.5% for the May-July period, a five-year high. The bank attributed this labor market weakness to rising costs and the adoption of technology and automation, which has reportedly reduced hiring dynamism.

By September 9, the economic outlook remained characterized by stagnant growth and persistent inflationary risks. Heightened international uncertainty, specifically the conflict between the United States and Iran, has pushed oil prices toward $100 per barrel. Consequently, analysts have significantly lowered GDP growth projections for 2026 to a range between 0.25% and 0.75%.