In an effort to boost Chile's economy, the country's central bank cut its benchmark interest rate by 25 basis points to 5.75% on Tuesday, in line with market expectations.

The board of directors of the central bank of Chile voted four to one in favor of the reduction, with the dissenting member preferring a 50 basis point reduction. Bank analysts estimated that the interest rate would likely fall by as much as 5% over the next five months. The annual inflation rate of the world's largest copper producer reached a peak of 14.1% in August 2022 and was 1.5% in August 2009, an increase of 1.5% compared to the previous year. The 25 basis point cut approved on Tuesday follows rate cuts of 50 basis points in May, 75 basis points in April, and 100 basis points in January.