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BCCh Decision Due At 2200BST/1700ET

CHILE
  • It remains a close call whether the central bank will maintain the initial pace of easing (100bps) at today’s meeting, or whether the board will opt for a more moderate 75bp reduction of the monetary policy rate which currently stands at 10.25%.
  • The updated Bloomberg survey shows that 13/22 surveyed analysts are forecasting the 75bp decrease, with all others expecting another 100bp cut. Bolstering the close call nature of Tuesday’s decision, President Costa has explicitly stated that the initial 100bp rate cut is not necessarily indicative of future monetary policy decisions.
  • Both central bank and market expectations remain in agreement that the benchmark rate will likely come down to between 7.75% and 8% by the end of 2023.
  • The full MNI preview with analyst views is here.

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