MNI Chile CB Review - Jun 2025: Door Open To July Rate Cut

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Executive Summary

• The Board of the Central Bank of Chile decided to keep the monetary policy interest rate unchanged at 5.00%, as expected. The decision was unanimous and represented the fourth consecutive rate hold.
• The statement struck a more dovish tone, with the Board sounding more comfortable about inflation risks, opening the door to renewed rate cuts in the coming meetings towards a neutral level.
• Analysts see scope for the easing cycle to resume in July, although external uncertainties could still delay that to September. Sell-side forecasts have converged around a year-end rate between 4.25-4.50%.