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CHILE: BCCh Expected To Resume Easing Cycle

CHILE
  • Following an unchanged decision in July, both central bank surveys of economists and traders lean towards the BCCh resuming its easing cycle today, cutting the policy rate by 25bp to 5.50% (2300BST/1800ET). Although softer-than-expected economic activity data supports this thesis, the uptick for both inflation and inflation expectations should leave the option to prolong the easing cycle pause on the table, reflected by some analysts within the Bloomberg survey expecting an unchanged decision.
  • The full MNI preview with analyst views is here.
  • Separately, Fitch Ratings is due to discuss sovereign risk, the financial sector, the situation of the real sector and other matters at an event in Chile at 1300BST/0800ET.

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