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BCCh To Observe All Data To Determine Cuts, Markets Closed For Public Holiday

CHILE
  • Responding to a question about how the board will determine the size of eventual rate cuts, BCCh President Rosanna Costa said the central bank observes a set of macroeconomic data when deciding on monetary policy which includes information about imports, consumption, demand, activity gap, inflation, inflation expectations, as well as high-frequency data. Costa also noted that the current account gap has narrowed quickly.
  • Substantial moves for Camara swap rates were seen on Tuesday following the surprise split decision to hold rates on Monday and the relatively dovish language in the statement. The curve re-steepened with one-year swap rates falling around 25bps throughout Tuesday’s session. Upward pressure was seen for USDCLP that closed 1.07% higher at 803.85.
  • Worth noting that Chile markets are closed today for a public holiday.

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