Banco Central de Chile holds its policy rate at 4,5%

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Banco Central de Chile holds its policy rate at 4,5%

28 October 2026

The Consejo of the Banco Central de Chile decided unanimously to keep the Tasa de Politica Monetaria (TPM) at 4,5%. It said risks to inflation have risen appreciably, pointing to higher energy and food prices, tension in the Middle East and an intense El Nino; oil has risen about 25% since September. Activity has been weaker than expected: the Imacec fell 1% year on year in August, mainly because of mining, and third-quarter indicators show weak consumption and weaker investment. Financial conditions have tightened, with the peso depreciating, the IPSA falling and long-term nominal rates rising. Annual inflation was 4,1% in September, and the bank restated its aim of bringing inflation to 3% within two years. It said future moves will be weighed meeting by meeting. The Consejo meets again on 15 December.

Policy rate (TPM): 4,5% Vote: Unanimous Annual inflation, September: 4,1% Inflation target: 3% Imacec, August: -1% year on year Next meeting: 15 December

Why it matters for exams: The Banco Central de Chile is the country's central bank and its 3% inflation target and the TPM are the standing facts behind any rate question.

Kerala PSCUPSC

28 October 2026 Source: BioBioChile

In plain words

TPM Tasa de Politica Monetaria — Chile's monetary policy rate, the rate the central bank sets.

Imacec Indice Mensual de Actividad Economica — Chile's monthly index of economic activity.