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BCCh Naudon Says Pause In Rate Cutting Cycle In H2 Is Reasonable

CHILE
  • In an interview with La Tercera over the weekend, BCCh board member Alberto Naudon said that a pause in the interest rate cutting cycle is “something that can reasonably happen” over the second half of the year. He added that clearly the intensity and frequency of rate cuts will be less than in the first half. Naudon also said that the impact of electricity price hikes would be transitory and not that big.
  • The next BCCh MPC meeting on July 31 looks like being a close call, with the recent BCCh traders survey revealing that a narrow majority expect the central bank to pause its easing cycle, while the equivalent economist survey showed that analysts still lean slightly towards a further 25bp cut to 5.50%.
  • Today, Energy Minister Diego Pardow is at an event organised by Fundacion Chile 21 on the country’s energy transition. No macro data are due, with June PPI inflation published on Wednesday and the latest BCCh traders survey released on Friday.

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