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Chile holds policy rate at 4.50%, citing weak growth and inflation risks

Societe Generale expects Chile to keep pausing, with any future moves tied to inflation expectations and clearer signs of recovery in activity.

Reported · Written up by our desk · Central Banks

Societe Generale’s Dev Ashish says the Central Bank of Chile kept its monetary policy rate unchanged at 4.50% in September, balancing weak domestic growth against rising external inflation risks.

The note points to disappointing economic activity, deteriorating labour conditions, and inflation expectations that remain anchored as key reasons for the decision.

Societe Generale expects an extended pause, arguing that the next policy move will depend on how inflation expectations evolve and whether Chilean activity shows a clearer recovery.

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