Chile holds interest rate steady at 11.25%

ISTANBUL

The central bank of Chile has held its monetary policy interest rate steady at 11.25%, in line with market expectations.

Banco Central de Chile said the decision was taken unanimously by the board members.

"World inflation has declined at the margin, mainly associated with a reduction in energy prices. However, it is still high and inflationary pressures remain significant," it said in the monetary policy statement released late Thursday.

"The growth outlook for 2023 remains weak, despite a slight upward adjustment," it added.

In December 2022, annual headline and core inflation stood at 12.8% and 10.7%, respectively, both down from the previous month.

The central bank said inflation expectations for the next two years still remain above 3%.