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MNI BCCh Review – Jan 2025: Extended Pause Signalled

The Board of the Central Bank of Chile decided to keep the monetary policy interest rate unchanged at 5.00% as expected.

Executive Summary

  • The Board of the Central Bank of Chile decided to keep the monetary policy interest rate unchanged at 5.00%, as expected, in a unanimous decision.
  • The statement continued to strike a cautious tone, noting the increase in inflation risks and removing the reference to future rate cuts.
  • Analysts see this as signalling an extended pause in the easing cycle, with rates likely to remain on hold through the first half of the year and potentially room for renewed rate cuts later in the year.

Click to view the full review: MNI BCCh Review - Jan 2025.pdf

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Executive Summary

  • The Board of the Central Bank of Chile decided to keep the monetary policy interest rate unchanged at 5.00%, as expected, in a unanimous decision.
  • The statement continued to strike a cautious tone, noting the increase in inflation risks and removing the reference to future rate cuts.
  • Analysts see this as signalling an extended pause in the easing cycle, with rates likely to remain on hold through the first half of the year and potentially room for renewed rate cuts later in the year.

Click to view the full review: MNI BCCh Review - Jan 2025.pdf