Chile central bank urges caution as it holds interest rate at 5.0%

SANTIAGO, March 21 (Reuters) - Chile's central bank kept its benchmark interest rate steady at 5% in a unanimous vote on Friday, in line with market expectations, as the monetary authority urged caution going forward on price pressures.

The rate hold is the bank's second in a row as inflation remains above its 2% to 4% target range.

Annual headline inflation in Chile, the world's largest copper producer, slowed to 4.7% in February from 4.9% in the previous month.

The South American economy has shown more dynamism than previously expected in recent months, the central bank said, largely due to exports with an additional boost from agriculture and tourism.

But it also warned that available data points to an inflationary outlook that "continues to face relevant risks, reaffirming the need for caution," according to a statement from the monetary authority.

Earlier this month, a central bank poll of analysts forecast Friday's pause on borrowing costs, adding they expected the benchmark rate to stay at 5% in the short term before coming down to 4.75% by the end of the year.