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BCCH Upgrade Inflation and Growth Outlook, Sees Gradual Normalisation

CHILE
  • Chile Cenbank Sees '21 Gdp Growth Of 8.5%-9.5%; Was 6%-7% (BBG)
  • Chile Cenbank Sees '22 Gdp Growth Of 2%-3%; Was 3%-4% (BBG)
  • Chile Cenbank Sees End-2021 Inflation At 4.4%; Was 3% Before (BBG)
  • Link to the June Monetary Policy report (IPoM):
  • https://www.bcentral.cl/en/content/-/details/banco...
  • Key parts on monetary policy accompanying the revised forecasts:
    • "The greater fiscal expansion and the high dynamism of consumption will make it less necessary for the monetary impulse to support the recovery of the economy, which is why it should begin to moderate earlier than expected in the previous Report."
    • "In any case, the Report highlights that, even in a context of gradual normalization, monetary policy will continue to accompany the recovery of the economy. Thus, starting from one of the most expansive levels among comparable economies, the central scenario anticipates that the MPR will be below its neutral value throughout the two-year policy horizon."

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