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Goldman Sachs Expect BCCh Cuts In Q3 2023

CHILE
  • The forward guidance paragraph signals the end of the hiking cycle. The monetary policy rate staying at 11.25% is in line with Goldman Sachs’ forecast for the terminal rate level.
  • GS believe the MPC will be patient and hold the policy rate at the currently restrictive monetary stance for a while. Moreover, the ex-ante real rate will still increase in the coming months as inflation expectations continue to moderate. Consistently, GS expect the MPC to wait until 3Q2023 (possibly late 2Q2023), to start to cut rates.

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