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MNI BCCh Preview – Oct 2022: 2200BST/1700ET

CHILE
  • The BCCh is widely expected to continue with its tightening cycle at the October meeting, with the median consensus pointing to a 50BP increase to the overnight rate target from 10.75% to 11.25%.
  • Despite the central bank nearing the upper bound of the rates corridor laid out in the latest Monetary Policy Report, inflation readings in August and September have remained high.
  • Additionally, a widening current account deficit and renewed CLP weakness amid ongoing political uncertainty would suggest the central bank should re-assert a hawkish posture in order to anchor inflation expectations.
  • The full MNI preview with analyst views is here: https://roar-assets-auto.rbl.ms/documents/19252/MNI%20BCCH%20Preview%20-%20October%202022.pdf

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