PrintEasing Cycle Likely to Resume in December at Chile's Central Bank After Tuesday's Hold, Says SocGen
BY MT Newswires | ECONOMIC | 09/10/25 11:06 AM EDT11:06 AM EDT, 09/10/2025 (MT Newswires) -- The Central Bank of Chile (BCCh) paused its easing cycle, keeping rates steady at 4.75% during Tuesday's meeting, citing higher-than-expected core inflation, said Societe Generale.
Although improving external conditions support the case for future easing, the statement indicates that the BCCh will adopt a cautious approach and wait for more information -- particularly regarding inflation -- before resuming rate cuts, wrote the bank in a note to clients.
While well-anchored inflation expectations and a softer growth outlook for 2026 suggest there is room for further easing, SocGen now expects only one more 25bps rate cut by the BCCh this year, likely in December, based on the September statement.
Additional easing is anticipated next year, with a projected terminal rate of 3.75% in 2026, concluded the bank.
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