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BCCh Interest Rate Decision, June Activity Data

CHILE
  • The majority of analysts are expecting the BCCh to further ease policy, cutting the overnight rate target by 25bp to 5.50% (2300BST/1800ET). While softer growth dynamics support this call, a rise in inflation expectations and central bank rhetoric signalling an upcoming pause keep an unchanged decision at this juncture firmly in play. Indeed, most recent economist and trader surveys from the central bank point to the decision being a very close call.
    • The full MNI preview with analyst views is here.
  • Meanwhile, activity data for June will be published at 1400BST(0900ET), including IP, retail sales and unemployment figures. June copper production figures will also cross.
  • Separately, Chile’s energy and mining committee will meet at 1330BST(0830ET) to discuss the eventual sale of 10% of Enami to Codelco.

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