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Central Bank Minutes Due

CHILE
  • At the bottom of the hour we will have the release of Chile central bank minutes from the March meeting. At that meeting, the governing board held the policy rate at 0.50% in a unanimous vote. The decision was in line with the expectation of all analysts surveyed by Bloomberg.
  • From the statement:
    • * "The MPR will be held at its 0.5% minimum until the recovery of the economy takes hold and spreads to the more lagging components of expenditure, which will take several quarters."
    • * This particular comment was seen as hawkish on the margin. Previous commentary referred to the MPR as remaining 'unchanged over most of the two-year monetary policy horizon'.
  • Given the release of the March Monetary Policy Report, analysts are not expecting too much from the minutes today.
  • However, any further details on the tweak in the forward guidance provided in the statement will be closely monitored.

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