The decision was unanimous, the bank said in a statement, and in line with market expectations.

The Central Bank of Chile decided on Friday to maintain its benchmark interest rate at 5.0%, in line with market expectations.

The decision was unanimous, the bank said in a statement.

"The movements of the local financial market, in general, have followed the trends of other emerging economies. Since the last meeting, short- and long-term interest rates have fallen. The peso appreciated nearly 7%, influenced by the global weakening of the dollar and the improvement in the price of copper. The IPSA has accumulated gains of around 6%. Credit has not shown major changes. Interest rates on consumer and commercial loans continue to exhibit behavior consistent with the evolution of the TPM (monetary policy rate)," says the Central Bank.

Likewise, the issuing body reported that the data for the end of 2024 and early 2025 show a more dynamic economy than expected, largely due to the boost from exports. This was compounded by the improved performance of some agricultural sectors and tourism. Regarding domestic demand, both private consumption and gross fixed capital formation show a gradual recovery path, in line with expectations.

The labor market continues to show limited slack, in a context where various sources show an increase in employment at the margin and annual real wage growth remains above the average for the last decade. The latest survey by the Capital Goods Corporation reinforced the prospects for greater investment in large projects in the short term. Business and household expectations have improved.

"Inflation has evolved in line with the forecasts in the December Report. In February, the annual change in the total and core CPI (excluding volatiles) stood at 4.7% and 3.9%, respectively. Some indicators of two-year inflation expectations remain above 3%," he noted.