Key facts
- Chile's central bank held its benchmark interest rate at 4.5%.
- Policymakers are balancing a weakening domestic economy with rising external inflationary pressures.
- The Imacec economic activity index fell 1.0% year-on-year in August.
- Unemployment reached 9.6% in the June-August quarter.
- Annual inflation stood at 4.1% in September.
Chile's central bank maintained its benchmark interest rate at 4.5% on Tuesday, October 27, 2026, as it navigates a deteriorating domestic economic landscape alongside increasing global inflationary pressures. The Monetary Policy Group had recommended holding the rate steady, citing both the weakness in the Chilean economy and elevated external price pressures, such as Brent crude reaching $116 per barrel. The Imacec economic activity index for August declined 1.0% year-on-year, and unemployment rose to 9.6% in the June-August quarter. Annual inflation in September was 4.1%, just above the bank's target tolerance range.