Interest rate hikes to remain gradual in Chile

The Central Bank of Chile (CBC) hiked interest rates by 25bps to 3.0% last night. The strength of the peso means that rate hikes are likely to remain gradual over the coming months. Accordingly, fiscal policy and macro-prudential measures hold the key to cooling demand. To this end, next year’s freeze in public spending is a good start, but more may need to be done if copper prices remain at current levels.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.