Chile Central Bank Downgrades Growth Outlook Amid Inflation Pressures

The institution simultaneously adjusted its medium-term expectations, nudging the 2025 growth estimate upward to between 2% and 3%. This pivot suggests a cautious optimism for recovery in the coming year, despite current headwinds. Meanwhile, the bank lifted its 2026 inflation forecast to 3.7%, a marginal increase from the earlier 3.6% target. Officials cited rising global fuel prices and ongoing market instability as primary drivers for the elevated price outlook, underscoring the delicate balance between stimulating growth and containing inflationary momentum.