Press Release*

Santiago, 14 January 2010

In its monthly monetary policy meeting, the Board of the Central Bank of Chile decided to maintain the monetary policy interest rate at 0.50% (annual).

Internationally, recent data confirm global activity prospects for this year, which have had an incidence in a progressive stabilization of financial markets. The prices of copper and oil have risen again.

Domestically, available information suggests that output and demand are expanding. The unemployment rate has continued to decline. Lending conditions have become less stringent.

In December, CPI inflation and the various core measures declined. Wage dynamics remain in line with historical patterns. Reduced y-o-y inflation rates are foreseen for the coming quarters. Medium-term inflation expectations have remained stable.

The Board estimates that the macroeconomic environment is consistent with a monetary policy interest rate that will be held at its minimum level of 0.50% at least until the second quarter of 2010. Accordingly, it reiterates that it will continue to use its policies with flexibility so that projected annual inflation stands at 3% over the policy horizon.

* The Spanish original prevails.