Chile's Central Bank Signals It May Be Done After Tuesday's Rate Cut, Says Scotiabank

BY MT Newswires | ECONOMIC | 12/17/25 09:42 AM EST

09:42 AM EST, 12/17/2025 (MT Newswires) -- Chile's central bank (BCCh) cut rates 25bps to 4.50% late Wednesday as widely expected, said Scotiabank.

The vote was unanimous, noted the bank.

BCCh's quarterly monetary policy report (MPR) upgraded the growth outlook with 2025 at 2.4%, 2026 at 2%-3% from 1.75%-2.775%, and left 2027 unchanged at 1.5%-2.5%.

The MPR raised the 2026 inflation outlook to 3.2% from 3%. Inflation is "foreseen to reach its 3% target during the first quarter of 2026."

At 4.5%, the overnight rate is barely within the estimated 3.5% to 4.5% neutral rate range, pointed out Scotiabank.

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