Chile is heading into the last quarter of 2025 with the brakes on and the pressure building. The Central Bank has held rates, headline inflation is softening and the Peso remains steady despite global volatility. But the story just beneath the surface is shifting. Core inflation is proving stubborn, employment is barely moving and the regulatory focus is now turning from design to execution. With elections only weeks away, markets are already starting to price in what comes next.
Monetary PolicyThe Central Bank held the policy rate at 4.75% at its September meeting. The statement pointed to persistent core inflation and external headwinds as the key reason to pause. The next meeting is scheduled for October 27–28. From where we sit we can already see a clear message and that is caution before conviction.Flashback: As flagged in our July brief when the first cut broke months of inertia, and in August when we noted that further easing would depend on inflation dynamics, the pause confirm...
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