Chile's central bank on Thursday said it was cutting its benchmark interest rate to 5.25% from a previous level of 5.50%, in a unanimous decision in line with analysts forecasts.

Chile’s central bank cut its key interest rate by a quarter-point for the second straight meeting and signaled borrowing costs will keep falling to a neutral level as the economy struggles to gain traction.

The decision came after new figures showed inflation across the bloc had fallen to its lowest level in more than three years.