Chile interest rate held at 4.5% in October 2026 as long rates rise

Chile's central bank held its policy rate at 4.5% on 27 October 2026 by unanimous vote, while flagging a rise in long-term nominal interest rates.

The facts

The Banco Central de Chile published its monetary policy statement on Tuesday, 27 October 2026, holding the policy rate at 4.5% by unanimous vote of the Board.
Headline consumer price inflation ran at 4.1% over the year to September 2026 and core inflation at 3.2%.
Two-year inflation expectations stand at 3.0% in the bank's Economic Expectations Survey, unchanged, and have risen to 3.2% in its Financial Traders Survey.
The statement reports that international financial conditions have become more restrictive, citing expectations of tighter global monetary policy, falling equity markets, a stronger US dollar and higher long-term interest rates.
Locally, the bank names a falling IPSA equity index, a weaker peso and an increase in long-term nominal interest rates.
Activity was split in August: the total Imacec index fell 1.0% over the year and 0.7% on the month, while the non-mining Imacec rose 1.4% and 0.7% on the same measures, with the bank attributing the headline weakness mainly to mining.

The policy rate is unchanged, but Chilean mortgages price off long rates, and the bank says those rose. Financing is getting dearer.
Glopra's figures put Chile at $2,247 per square metre with rent at $8.71 per square metre a month, a gross yield of about 4.6%, which is thin cover if the long end keeps climbing.
For anyone already holding Chilean property, the weaker peso the statement names is the live channel: rent collected in pesos converts into fewer dollars whatever the local index does.
Inflation at 4.1% in September sits above both two-year expectations the bank cites, 3.0% among its surveyed economists and 3.2% among financial traders.

The minutes are printed for 08:30 on Wednesday, 4 November 2026, and the next monetary policy meeting for Tuesday, 15 December 2026.
The statement names rising long-term nominal rates, a falling local equity index and a weaker peso together, and quantifies none of the three.
Mining drives the headline activity gap: total Imacec at -1.0% against non-mining at +1.4% over the year to August.

Sources: Banco Central de Chile https://www.bcentral.cl/en/areas/monetary-politics/monetary-policy-meeting-rpm/documentation-rpm