May 31, 2024 15:25 GMT
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.
89 words