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Analysts Divided Over Upcoming BCCh Meeting

CHILE
  • The range of forecasts among surveyed analysts for this Wednesday’s BCCh meeting varies from unchanged, through to a 75bp hike.
  • Despite inflation falling to 13.7% in September from 14.1% in August, the first decline since February 2021, core inflation extended its uptrend, rising to 11.1% from 10.8%.
  • Perhaps more comforting, one-year inflation expectations fell to 7.0% in September from 7.3% in August, the first decline since January. Two-year expectations fell to 3.8% from 4.0%. The central bank targets 3.0% +/- 1 percentage point.
  • A very light week of data in Chile, with just the central bank economist survey results preceding the rate decision on Wednesday.
    • The full MNI preview with analyst views will be published on Tuesday.
  • Chile’s Finance Minister Mario Marcel said a prudent date for the approval of a tax reform would be by the end of March and reiterated the government’s commitment to meet Chile’s fiscal spending rule, according to an interview with newspaper La Tercera.

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