Chile Holds Rates as Oil Surge Mars Inflation Outlook

Chile’s central bank held its key interest rate steady, warning that a coming jump in fuel prices will “significantly” boost inflation amid heightened uncertainty triggered by conflict in the Middle East.

Board members led by Rosanna Costa voted unanimously to keep borrowing costs unchanged at 4.5% late on Tuesday, in line with the expectations of all 19 analysts surveyed by Bloomberg. By contrast, economists surveyed by the central bank in February, before the start of the Iran war, had forecast a quarter-point cut at today’s meeting.