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Itaú Expecting BCCh To Cut To 5.25% By Year-End

CHILE
  • The weaker-than-expected sectorial data released earlier today leads Itaú to expect a 3.4% annual IMACEC increase in April (to be published on June 3).
  • Itaú expect lower average inflation, falling interest rates and a recovering mining sector to support a GDP rebound to 2.4% this year, with risks tilted to the upside.
  • A broadly closed output gap, along with anchored inflation expectations should allow for the BCCh to ease further. Itaú see the central bank taking the policy rate to 5.25% this year, with further cuts dependent of global financial developments.
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  • The weaker-than-expected sectorial data released earlier today leads Itaú to expect a 3.4% annual IMACEC increase in April (to be published on June 3).
  • Itaú expect lower average inflation, falling interest rates and a recovering mining sector to support a GDP rebound to 2.4% this year, with risks tilted to the upside.
  • A broadly closed output gap, along with anchored inflation expectations should allow for the BCCh to ease further. Itaú see the central bank taking the policy rate to 5.25% this year, with further cuts dependent of global financial developments.