The Central Bank of Chile kept its benchmark interest rate unchanged at 4.5% at its July meeting, with the decision approved unanimously. Policymakers said the macroeconomic outlook remains subject to greater-than-usual uncertainty as renewed fighting between the US and Iran lifted oil prices back toward $100 per barrel and clouded the outlook for global supply. Domestically, economic activity weakened more than expected, with May’s Imacec falling 0.9% annually while investment and labor market conditions softened. Meanwhile, annual inflation accelerated to 4.3% in June, slightly above forecasts, as core inflation rose faster than expected and short-term inflation expectations increased alongside higher oil prices. However, inflation expectations two years ahead remained anchored at 3%. The board reiterated it will assess policy meeting by meeting and take the measures needed to return inflation to its 3% target over a two-year horizon.