Chile Interest Rate

The Central Bank of Chile unanimously decided to keep the policy interest rate at 5% at its March meeting. The Board mentioned that global economic uncertainty has risen since the last meeting due to escalating geopolitical risks and new US tariff announcements, along with responses from affected countries. This has particularly impacted U.S. growth prospects and raised inflation expectations, leading the Federal Reserve to pause its rate-cutting cycle. Global financial markets have reacted differently, with U.S. equities declining while European and Chinese stocks have risen. The weakening U.S. dollar has boosted commodity prices, with copper rising 8% since the last meeting, while oil prices have dropped around 9% due to global growth concerns. In Chile, financial markets have followed broader emerging-market trends, with lower interest rates, a 7% appreciation of the peso, and a 6% gain in the IPSA index.