Investing.com – Chile’s central bank has published its December Monetary Policy Report, in which it projects economic growth of between 1.5% and 2.5% for 2025 and 2026, after an expansion of 2, 3% in the country’s economy this year. The report attributes these forecasts to the increase in public spending and a greater contribution from the foreign sector, offset by a lower stimulus to demand from households and companies.
The bank’s report indicates that economic growth for this year will be at the lower end of the previously estimated range of 2.25-2.75%.
In terms of inflation, the bank estimates that the annual rate will close this year at 4.8%, and will end 2025 at 3.6%. In early 2026, it expects the inflation rate to decline to the 3% target. The report acknowledges that inflation is currently higher than expected a few months ago, attributing this to factors such as the global appreciation of the US dollar and an increase in local labor costs.
The central bank also announced on Tuesday that it had reduced the official interest rate by 25 points, to 5.0%. He said near-term risks to inflation were tilting to the upside, making caution necessary.
The report suggests that, in the medium term, a weaker outlook for domestic demand should ease cost pressures.
In addition, the bank has projected that the price of , which is Chile’s main export, will be $4.20 per pound in 2025 and $4.30 in 2026.
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