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Blocking of Pensions Bill Provides Relief for Boric

CHILE
  • The Lower House pushed back against a set of legislation that allows for a further round of pension fund withdrawals – effectively blocking the bill. The legal tweaks would have allowed for Chileans to withdraw their entire pension savings – complicating the inflation outlook for the BCCh. President Boric’s government had argued against the bill on economic grounds – and legislators are no now longer permitted to debate the measure for twelve months.
  • May Chile CPI is due at 1300BST/0800ET – markets expected Y/Y CPI to slow to 8.9% on the year, with M/M release static at 0.3%.

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