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Financial Policy Board Maintain Level of Counter-Cyclical Capital Buffer

CHILE
  • At Tuesday’s Financial Policy Meeting, the Board of the Central Bank of Chile decided to maintain the Counter-cyclical Capital Buffer at 0.5% of risk-weighted assets, which will be enforceable as from May 2024. The board noted that after the previous Financial Policy Meeting in May 2023, external risks have increased. This has been associated with the tightening and volatility of global financial conditions and escalating geopolitical tensions.
  • Statement: https://www.bcentral.cl/en/content/-/detalle/reunion-de-politica-financiera-segundo-semestre-2023
  • Despite a corrective cycle playing out last week, the USDCLP uptrend remains intact. Softer-than-expected CPI data and a firmer greenback are contributing to a 0.65% advance since the open. On the upside, initial resistance is at 905.41 the 20-day EMA.

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