Lower House Committee Approves Initial 4th Pension Withdrawal Vote

Constitutional Commission Of Congress Approve Joint Project Of The 4th Withdrawal From Pension Fund System

• Chilean lawmakers backed a proposal for a new round of early pension fund withdrawals in the first of several votes, advancing legislation that could inject $20 billion into an already red-hot economy.
  • The proposal was narrowly approved with seven votes to six on Wednesday. The body must now review the proposal on an "article by article" basis, with a second vote likely later this month.
  • The text would then head to the lower house floor, followed by the senate.
• The developments are extremely important given most recent comments from both the central bank and the finance ministry regarding inflationary pressures.
• Central Bank President Marcel made comments that the BCCh are not 'behind the curve' on inflation.
  • However, he added their base outlook doesn't consider new pension withdrawal and it is possible a new pension withdrawal could drive CPI higher.