Skyline in Chile

Chile Monetary Policy January 2021

Chile: Central Bank stands pat in January

At its 26–27 January meeting, the board of the Central Bank of Chile unanimously decided to keep the monetary policy rate unchanged at 0.50%, its lowest point since 2009. The decision matched market analysts’ expectations and included the continuation of unconventional liquidity measures to support the economy. Specifically, the Bank decided to open the third phase of its Financing Facility Conditional on Increased Lending (FCIC), which will amount to USD 10 billion for six months and will include an expansion in the eligible collaterals.

Steady inflationary pressures in November-December and an incipient, albeit still uneven, economic recovery following Q3’s bounce-back supported the Central Bank’s decision to maintain its ultra-loose monetary policy stance. On top of that, the Bank’s continuation of its unconventional asset purchase program should meet the financial needs of companies as the recovery gains traction, supporting activity.

Moving forward, the Bank reaffirmed its intention to maintain the policy rate at 0.50% for most of the two-year monetary policy horizon and stated that it will “maintain the reinvestment policy of the bank bond stock program announced in December”.

The next monetary policy meeting is scheduled for 29–30 March.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest X Download Fullscreen