Chile’s central bank lowered its benchmark interest rate by 25 basis points to 4.75 % on 29 July, marking the first monetary easing since December 2024. The unanimous decision by the five-member board resumes a cutting cycle that had paused for four meetings after the rate fell from a 2023 peak of 11.25 %. Policymakers said the move reflects mounting evidence that inflation is converging toward the 3 % target. Consumer prices fell 0.4 % in June, bringing annual inflation down to 4.1 %, the lowest in ten months. The bank also cited a weakening labour market and softer domestic demand as factors allowing looser policy. Finance Minister Mario Marcel earlier this week maintained a 2025 growth forecast of 2.5 % and said inflation was running below prior projections. Analysts had largely expected Tuesday’s cut and anticipate at least one additional reduction before year-end if price pressures continue to abate.