Local analysts reduced their growth expectations both for February and the full-year.
The central bank upheld the key interest rate for a 13th month, as lower public investments hamper growth and inflation remains on target.
The report finds that LAC can reap important growth benefits from further trade integration and also emphasizes the importance of complementary policies, said the IMF in a press release.
Both banks introduced the changes to their interest rates in order to follow new central bank rules that will come into effect on April 3.
Chile's central bank president Mario Marcel said with inflation under control and the prospects of a monetary tightening in the US, lower interest rates are a possibility.
The Andean nation has made great strides in the last 25 years, but its loans-to-GDP ratio remains below several other LatAm countries.
Workers took to the streets this week to protest against layoffs and rising prices.
With the objective to boost Spanish investments and commerce in Central America, the region's development bank CABEI and Spain's state-owned bank ICO signed a financing agreement of 25mn euros.