Policymakers held the benchmark rate at 5%. The central bank has held rates unchanged since January as inflation remains below its inflation target, despite an acceleration of economic growth. Market expectation point to an increase in interest rates the second half of 2007.
In its policy statement the central bank noted that inflation "remains influenced by fuel prices, and by a rebound in core inflation."
Annual inflation in quickened to 2.9% in May - just fractionally below the Central Bank of Chile's 3% inflation target. The economy expanded 6.6% annually in April, a rate the central bank referred to as "somewhat above earlier projections."