Chile central bank lowers interest rate to 4.75%

SANTIAGO, July 29 (Reuters) - Chile's central bank on Tuesday lowered its benchmark interest rate for the first time this year, to 4.75%, in a unanimous decision widely expected by markets.

In its accompanying statement, the bank said future monetary policy movements would depend on the evolution of the macroeconomic scenario and its implications for inflation's convergence to its target.

Annual inflation in the South American country hit 4.1% in June, slowing from the 4.4% registered in the previous month and closing in on the Chilean central bank's target range of 2% to 4%.

The Chilean central bank lowered borrowing costs by a total 625 basis points between July 2023 and December 2024, and had since kept its benchmark rate unchanged as it urged caution given price pressures.

The Trump administration has announced a 50% tariff on copper imports effective August 1. Chile expects the measure to be addressed in broader trade discussions in Washington this week, Finance Minister Mario Marcel said on Monday in an interview with local radio station Duna.

The central bank cited the measures in its statement, saying the U.S. is facing rising inflationary risks.