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BCCh Review: Signal Rates To Be Increased Beyond Neutral Level

CHILE
  • On Tuesday, the BCCh decidedly unanimously to hike the monetary policy interest rate by 125bp to 4.00%. The decision was in line with the majority of surveyed forecasts.
  • In a more hawkish development, the statement explained that the board now “foresees that the MPR will be further increased in the short term, to exceed its nominal neutral level —i.e., the one that is consistent with the 3% inflation target— during much of the monetary policy horizon.”
  • The Monetary Policy Report is scheduled to be released at 1200GMT/0700ET and will contain “the details of the central scenario, its surrounding sensitivities and risks, and its implications for the evolution of the monetary policy rate.”
  • The minutes will be released on December 29. The next monetary policy decision and statement release will be on January 26.
  • The link to the statement is here: https://www.bcentral.cl/en/content/-/details/monetary-policy-meeting-december-2021

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