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Central Bank Rate Decision, Activity Data Weighs On CLP

CHILE
  • The Chilean peso came under heavy pressure on Monday following a below-expectation economic activity print for February. Imacec data showed annual growth at -0.5% and provides an interesting backdrop for the BCCh decision/statement later today.
  • The central bank is expected to keep the policy rate unchanged at 11.25%. Central bank rhetoric combined with ongoing pressure on core inflation and inflation expectations solidifies the likelihood of the committee maintaining its current stance of monetary policy. However, with several analyst predictions for easing to commence in Q2 2023, the statement and the central bank’s quarterly monetary policy report will be closely scrutinised for clues on when rate cuts should be expected.
  • Link to MNI preview with analyst views is here: https://roar-assets-auto.rbl.ms/files/52346/MNI%20BCCH%20Preview%20-%20April%202023.pdf

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