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CHILE: BCCh Board Had Extremely Close Call Between 25BP Cut and Hold

CHILE
  • The BCCh board discussed options of a 25bp cut or a hold and emphasises the extremely close nature of the call.
    • "The Board agreed that the two options were compatible with the strategy proposed in the IPoM, noting that market expectations actually assigned fairly the same probability to both. Hence, choosing one or the other option required considering tactical aspects and the weighting of risks."
    • "Considering the related risks, it was noted that neither option clearly dominated over the other, and the data that would be known before the next IPoM would help to better gauge their implications."

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