LatinNews Daily - 26 March 2026

*Chile’s central bank (BCCh) has released the latest edition of its latest monetary policy report (IPoM), which reduces its annual growth projection for 2026 to 1.5-2.5%, down from 2-3% forecast from the previous IPoM report released in December. The IPoM report also raises its forecast for annual inflation for 2026 to 4.0% up from 3.2% in its previous report. According to a BCCh statement, 2026 began with encouraging economic signs, such as an improvement in financial conditions and prices of copper (a major Chilean export) at “historic levels”. However, it says that the international landscape is now facing great uncertainty due to the ongoing conflict in the Middle East. The BCCh warns that inflation could rise significantly in the short term due to the volatility in fuel prices, while factors such as international uncertainty and weaker performance in the mining sector could drive down Chile’s economic activity as well.

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