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MNI BCCh Preview – 2200BST/1700ET

CHILE
  • The BCCH are expected to continue their aggressive pace of tightening at the March meeting with at least another 150bp hike to the overnight rate.
  • However, worsening price dynamics both globally and on the domestic front, have prompted several analysts to forecast even bolder action of up to a 200 basis point interest rate increase at this week’s meeting, potentially bringing the overnight rate to 7.5%.
  • Aside from the actual decision, the updated forward guidance will be provided in the quarterly monetary policy report (IPOM), scheduled to be published the day after the committee’s decision and analysts will look for details relating to the short-term trajectory for the policy rate.
  • The full preview with analyst views can be found here: https://marketnews.com/mni-chile-central-bank-prev...

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