(Bloomberg) -- Chile economists are trimming their bets on future interest rate cuts from the central bank as inflation picks up. 

The economists raised their year-end key rate forecast to 4.75% from 4.5% in April, according to a monthly central bank survey published on Friday. Analysts see borrowing costs hitting 4.5% in 11 months, up from a previous estimate of 4.25%.

The country’s consumer prices rose more than forecast in April and annual inflation sped up further above the 3% target, reinforcing the need for caution in monetary policy. Economists still expect the central bank will lower borrowing costs by 50 basis points to 6% later this month.

Read more: Chile’s Inflation Accelerates, Stoking Caution on Rate Cuts

Consumer prices are expected to rise by 0.3% in May from the previous month and annual inflation is expected to hit 3.8% at the end of the year, according to the survey. The GDP forecast was held at 2.5% for 2024.

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