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BCCh Minutes Shows 25BP Option Leaves Door open to Further 2024 Easing

CHILE
  • The central bank of Chile has published the minutes to its June MPC meeting when it cut by 25bp to 5.75% here.
  • "There was agreement that the two most important developments in the projection scenario suggested a path for the nominal MPR somewhat above that considered in March, as contained in the June IPoM."
  • "About the decision to cut 25bp off the MPR, it was noted that this option was the most consistent one with the IPoM’s central scenario. It had the advantage of clearly stating that, despite how important the shock on inflation was, it was transitory, and monetary policy could accommodate it by further reducing the MPR in the quarters ahead. Moreover, it was a decision that, if the central scenario proved true, it left room for a further reduction in the remainder of the year."

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