Banco Central de Chile's monetary policy board on June 13 unanimously decided to keep its policy interest rate unchanged at 2.5%.

Chile is experiencing a sustained economic recovery, with businesses and consumers maintaining upbeat outlook, the bank said. The central bank projects inflation to reach 3% over a two-year period. Annual CPI inflation stands at about 2%.

"On the one hand, the recovery of the economy continues to consolidate and, on the other, perspectives for short term inflation have been revised upwards mainly due to the peso value of oil," the board said in a statement.

Economic growth projections were revised upward to 3.8% for both 2018 and 2019, from 3.6% and 3.7%, respectively.