Chile’s central bank lowered its benchmark interest rate by 25 basis points to 4.75% on 29 July, the first cut this year and the first since December 2024. The board voted unanimously after four meetings of holding the rate at 5%, saying the move was consistent with its medium-term inflation target. Policymakers pointed to a softer labour market and faster-than-anticipated disinflation. Consumer prices fell 0.4% in June, bringing annual inflation down to 4.1%, while economic activity contracted 0.2% in May. The bank said the adjustment should help guide inflation toward its 3% goal amid subdued domestic demand and easing external pressures. On 19 June, the Central Bank of the Republic of Turkey left its one-week repo rate unchanged at 46%, in line with market expectations. Officials said underlying inflation, which slowed to 35.4% in May, continues to edge lower, but warned that pricing behaviour and geopolitical tensions remain risks. The bank reiterated its commitment to maintain a tight stance to secure a lasting downward path in prices. The divergent decisions highlight differing monetary-policy trajectories among emerging markets as central banks balance cooling inflation against growth concerns and external uncertainties.