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BCCh Takes Hawkish Route With 75bps Hike

CHILE
  • The Chilean central bank took the hawkish route at Tuesday's rate decision, hiking rates by 75bps to 1.50% from 0.75% previously. The bank's statement flagged that economic growth and consumption has strengthened, implying faster pipeline inflation.
  • In the unanimous decision, the board cited fuel prices, 'extraordinary' dynamism in consumption, the soon-to-turn positive output gap and liquidity injections as fuelling inflation - a sign that many on the sell-side have interpreted as leading to a faster tightening cycle in Chile.
  • More details are due to be released today with the bank's quarterly report on the docket.

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