The Central Bank of Chile kept its benchmark interest rate on hold at 11.25% in its March meeting, keeping borrowing costs at the highest since November 1998.
The board warned that the economy is adjusting more slowly than expected and inflation is taking longer to come down. Inflation remains still high although it declined in February as headline and core inflation stood at 11.9% and 10.7% respectively, with core inflation has been fairly constant for several months. The Board considers that it will be necessary to keep rates on hold until macroeconomic conditions indicate that the process of inflation convergence to the 3% target has been consolidated.