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July Economic Activity Data, Boric Vows To Move Ahead With Pension Reforms

CHILE
  • Economic activity is expected to have risen 0.8% in July from a year earlier, driven by services that gained due to base effects and changes in the school calendar. However, annual growth is likely to turn negative again in August. Today’s data is due at 1330BST/0830ET:
    • July Economic Activity. Est. Y/y +0.8%, prior -1.0%. Est M/m -0.2%, prior 0.5%
  • Rising copper prices following the announcement from China on home buying stimulus measures should support the Peso on Friday, however with both local activity data and the US employment figures being announced at the open, broader global drivers will likely dominate the early price action. It is worth highlighting, the BCCh have a rate decision on Tuesday for which early surveys indicate the central bank may decelerate its initial easing pace with a 75bp cut.
  • Chile’s President Gabriel Boric said at a mining society Sonami event that his government wants to speed up mining permitting. Boric added that Chile needs to boost mining exploration, without providing details. On pension reform, the President promised to move forward with new legislation, stating the government cannot fail again.

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