The board of the Central Bank of Chile voted unanimously on July 14 to increase its policy interest rate by 25 basis points to 0.75%.

The decision takes place as Chile experiences a rapid economic recovery, with recent rises in both headline and core inflation exceeding the central bank’s 3% target.

“The activity gap will continue to close rapidly, accompanied by a high fiscal impulse and a strongly dynamic consumption,” says the board’s policy statement. “This creates the conditions for a