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Central Bank's President Reiterates No Rate Hike in 2021

CHILE
  • Chilean central bank President Mario Marcel said he doesn't anticipate a rate increase this year because the impact of the coronavirus pandemic on the economy isn't over.
  • In a lengthy interview with the daily La Tercera, Marcel defended the bank's decision to revise the nation's growth expectations upward to 7% this year. Still, he said, the recovery would depend on the vaccine rollout, and that impacts of the pandemic will still be felt.
    • Analysts remain divided as to whether the slight language alteration within the monetary policy statement was a marginally hawkish shift.
    • Interest rate swaps continue to price one rate hike to 0.75% within six months.

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