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Central Bank Minutes Due Tomorrow

CHILE
  • On Wednesday, the BCCh will release the minutes of the April meeting, where the committee cut rates by 75bps to 6.50% and conveyed a more cautious/hawkish tone. Our full review of the decision is here: https://roar-assets-auto.rbl.ms/files/60652/MNI%20BCCh%20Review%20-%20April%202024.pdf
  • Goldman Sachs will be attentive to the MPC’s preferences for the pace at which the easing cycle should continue going forward. Notably, guidance from the central scenario contained in the IPoM suggests that the baseline for the May meeting is for the MPC to slow its pace of cuts further to 50bps. GS will be particularly attentive to a discussion among board members on external conditions and the relative stance of monetary policy in Chile against other central banks, particularly the Fed.
  • Itaú point out that in the IPoM, the Board anticipates that rate cuts will continue with the magnitude and timing of the cuts being data-dependent, and with the external scenario as one of the main risks to observe. The minutes will likely provide greater detail on the different alternatives considered, and what may determine the size of further adjustments ahead.

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