May 13, 2024 11:07 GMT
BCCh Governor Costa Says Inflation In Line With Central Bank Expectations
CHILE
- BCCh Governor Rosanna Costa said over the weekend that inflation has been in line with central bank expectations, despite the slight upside surprise to market forecasts in last week’s April data. She noted that there may be some transitory pressures from higher energy prices and the weaker FX, but she added that inflation has eased significantly and will converge to target within the policy horizon.
- Her comments follow the increase in April chained CPI inflation to 4.0% y/y, from 3.7%, which was 20bp above the 3.8% consensus. Meanwhile, last week’s central bank economist survey showed that analysts expect the central bank to slow the pace of rate cuts to 50bp, from 75bp, at its May meeting.
- This week, the central bank publishes its latest traders survey on Thursday, which will include market participants forecasts for the interest rate outlook. The next MPC meeting will be on May 23.
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