Central Banks
Chile’s Central Bank Sees Interest Rate Falling Toward Neutral Level
- Policymakers cut borrowing costs 25 basis points on Sept. 3
- Board sees inflation slowing to 3% target in early 2026
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Chile’s central bank said its interest rate can fall toward a neutral level given lower risks to inflation, according to the minutes of its most recent policy decision.
Board members weighed a reduction of either 50 or 25 basis points this month, they wrote in the minutes to their Sept. 3 decision, when they lowered borrowing costs by a quarter-point to 5.5%. That drop was coherent with their outlook and also future cuts, policymakers wrote in the document published Monday.