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BCCh Decision Friday, Traders Survey Sees July Rate Cut

CHILE
  • The BCCh is expected to keep the policy rate unchanged at 11.25% on Friday. Central bank rhetoric combined with the persistence of high core inflation and inflation expectations solidifies the likelihood of the committee maintaining its current stance of monetary policy. However, several analysts are expecting that future meetings will become closer calls, and therefore the statement will be closely scrutinised for clues on when monetary easing could be expected.
  • JPM have said that they continue to expect the CBC to start easing in early 3Q23, though further risk premium decompression in political developments and negative sequential growth expected for 2Q23 make the June policy meeting a live one when it comes to policy action. The full MNI preview with analyst views will be published later today.
  • Just released in the latest central bank traders survey:
    • CHILE TRADERS SEE KEY RATE AT 11.25% THIS WEEK: SURVEY (BBG)
    • CHILE TRADERS SEE KEY RATE AT 11.25% IN JUNE
    • CHILE TRADERS SEE KEY RATE CUT IN JULY

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