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BCCh Expected to Step Up Easing Pace This Week

CHILE
  • There are no domestic data due today, but December unemployment, copper production and retail sales figures will all be released ahead of Wednesday's BCCh policy meeting. Following the larger-than-expected drop of inflation in December and decline of inflation expectations back to target, the BCCh is expected to step up the pace of easing this week.
  • The results of Friday’s central bank survey of traders showed that the median estimate is for a 100bp rate cut at this meeting, to be followed by two 75bp cuts in the following meetings. The majority of analysts also expect a 100bp cut this week, following December’s 75bp move. However, there are some that still expect BCCh to stick with 75bp, partly due to concerns about FX pressures and also for reasons of policy continuity.

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