SANTIAGO, May 12 (Xinhua) -- Chilean market analysts have forecast 2 percent growth for the South American country's economy in both 2025 and 2026, the Central Bank of Chile said Monday.

The financial market's forecast is in line with the expectations of the central bank, which projected that gross domestic product (GDP) will expand between 1.75 percent and 2.75 percent this year.

According to Chile's Economic Expectations Survey (EES) for this May, the economists expect inflation of 0.2 percent this month and of 0.1 percent next month.

In their analysis of the economy, the experts expect the consumer price index (CPI) to reach 4 percent by the end of 2025 before sliding to 3 percent in 2026, in line with the target range established by the country's central bank for a healthy economy.

Regarding the monetary policy rate, a tool used to curb inflation by cutting monetary stimulus, the figure is expected to remain at 5 percent over the next two months before dropping to 4.5 percent by the end of the year.

Last month, the Council of the Central Bank of Chile decided at its monthly meeting to maintain the monetary policy rate (MPR) at 5 percent, amid global uncertainty regarding tariffs imposed by the United States on its trade partners.

The group unanimously agreed to extend the interest rate for another month, after lowering the figure from 5.25 percent in December.

The interest rate is expected to maintain its downward trend, but with caution considering the risks of accelerating inflation and global economic uncertainty due to trade tariffs.

Chile ended 2024 with a surprising increase in economic activity in December of 6.6 percent year on year, leading to estimated growth of 2.6 percent for the year, according to figures from the central bank. ■