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Fourth Quarter GDP & Current Account Data Due

CHILE
  • Chile is scheduled to publish Q4 GDP this morning, which according to the Bloomberg survey, likely expanded 0.2% y/y. Full year GDP figures will also be released, alongside Q4 current account balance data due at 1130GMT/0730ET:
    • 4Q GDP. Est. Q/q 0.2%, prior 0.3%; est. YoY 0.2%, prior 0.6%
    • 4Q Current Account Balance. Est. -$2672m, prior -$4495m
    • Separately, Central Bank’s Alberto Naudon participates in the Bank for International Settlements’ meeting of Emerging Markets Deputy Governors to be held in Basel, Switzerland
  • The domestic focus will then shift to activity data at the end of the month, before the April 02 central bank decision. As a reminder, the above-expectation inflation data earlier this month has prompted analysts to scale back the BCCh cutting expectations with the median forecast now expecting a 75bp move.
  • Despite this, a former central bank governor recently told MNI that the BCCh should cut rates even more aggressively given a sluggish economy. They added that there is little chance of a significant rebound in inflation or a return to monetary tightening either in Chile or elsewhere in Latin America.

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