Banco Central de Chile expects the Chilean economy to grow between 3.0% and 4.0% in 2018, according to its newest monetary policy report, raising its forecast from a previous estimate of 2.5% and 3.5%.

"The growth of activity has increased in recent months, particularly in the non-mining sectors, which recovered dynamism in the second half of 2017, after a slow start to the year," the central bank said and noted external growth was ticking higher than in the previous years and that commodity prices were at increasing levels.

On March 20 the central bank held its monetary policy interest rate at 2.5%, as inflation in Chile continues below 3%.

Meanwhile, the regulator projects Chile's GDP to grow between 3.25% and 4.25% in 2019 and 3.0% to 4.0% in 2020.