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Central Bank Governor Marcel Says Key Rate Still Well Below Neutral Level

CHILE
  • Chile central bank governor Mario Marcel said in Senate hearing that policy rate is still 'well below neutral rate'.
  • As a reminder, Chile central bank 'surprised' the market yesterday by taking a hawkish route, hiking by 75bps to 1.50% (vs. 50bps exp.) following a 25bps increase in July.
  • Marcel mentioned that inflation was 'not out of control', and confirmed that Chile central bank is removing monetary stimulus.
  • CPI inflation surged to 4.5% in July, diverging from the 4% CCB upper tolerance band. Next inflation print will come out on September 8.
  • Momentum on CLP has been firmed in the past two days; USDCLP is down nearly 2%, halted by the 50DMA at 763.52.

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