Chile central bank holds interest rate at 5.0%

SANTIAGO, April 29 (Reuters) - Chile's central bank on Tuesday held its benchmark interest rate at 5% in a unanimous vote, in line with market expectations.

The latest decision follows a previous rate hold, as the monetary authority has increasingly urged caution in the face of inflation and global economic uncertainty.

The bank said that global economic uncertainty had "increased considerably" since the last meeting, especially related to tariffs announced by the United States in April and subsequent events.

"Changes in global trade policy have deteriorated the prospects for global growth, while increasing uncertainty about its future evolution," the bank said in a statement, adding the magnitude and timing of effects on the local economy are uncertain.

The bank said that the "domestic market was also affected by international volatility."

It added that the financial situation had improved since the beginning of April, including a "decrease in short and long-term interest rates, an appreciation of the peso and a rise in stock prices."

The bank said that while inflation remains at high levels in the immediate future, recent developments "reaffirm the convergence prospects contained in the March Monetary Policy report," adding that the need for caution remains.