Chile’s central bank is anticipated to raise its benchmark interest rate one final time at its December meeting. Market expectations point to a 25 basis point increase this year, with the rate projected to reach 12.25% by the end of 2026. Following this peak, the rate is forecasted to begin declining in 2027. Specifically, it's expected to fall to 10.5% by the close of 2027. This suggests a shift in monetary policy following a period of tightening aimed at controlling inflation. The projections indicate a cautious approach to easing rates, prioritizing economic stability during the transition. These forecasts reflect market assessments of Chile’s economic outlook and the central bank’s likely response.

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