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Goldman Sachs Say Several Factors Warrant More Restrictive Policy Stance

CHILE
  • Goldman Sachs expect the MPC to hike its policy rate by 50bps to 11.25%.
  • In their view, a more restrictive monetary policy stance is warranted given (1) the high inflation prints in Aug and Sep; (2) above-target short- and medium-term inflation expectations; (3) stronger than expected non-mining activity; (4) wide current account deficit and deteriorating trade balance; (5) weaker CLP (-5.3% since the last MPC meeting) and end of the central bank’s FX intervention program; and (6) the more hawkish monetary policy calibration by central banks in advanced economies.

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