Chile heads into Q2 with the mood cooling and the ground shifting. The Central Bank has slammed the brakes on easing, with inflation pressures creeping back and the peso losing a bit of steam. Growth ended 2024 on a solid note — better than most had expected — but the momentum is clearly slowing. The labour market is edging forward, although structural cracks like informality and gender gaps are still wide open. Beneath the surface, reforms are moving — pensions, fintech, resilience laws — but it is the delivery, not the ambition, that will matter now. The February blackout barely made the headlines but exposed real vulnerabilities. With elections looming in November and the political tide turning, the risk dial is ticking up. The next few months could get messy.
Monetary Policy.
No change in rates - but the mood has clearly shifted. The Central Bank held at 5.00% in January, calling time on last year’s aggressive 325bps easing cycle. The pause reflects rising inflation risks and creep...
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