Chile's Central Bank Pauses Rate Cuts, Holds Steady at 5.75%

Chile's central bank has paused its interest rate cuts, holding at 5.75%, after reducing the rate by 550 basis points over eight consecutive cuts. The decision aligns with traders' expectations and marks the first pause since the easing cycle started.

Chile's central bank on Wednesday held its benchmark interest rate at 5.75% in a unanimous vote, aligning with traders' expectations. This pause comes after eight consecutive rate cuts that reduced the rate by 550 basis points, down from a high of 11.25% last July.

The central bank's decision marks the first time it has paused the rate since the easing cycle began. Analysts had largely anticipated this move, considering the substantial rate reductions already implemented.

This strategic halt allows the bank to assess the economic impact of prior cuts before determining any further monetary policy adjustments.

(With inputs from agencies.)