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MNI BCCh Review - July 2024: Unchanged Decision Marks Marginal Hawkish Surprise

MNI Chile Central Bank Review - July 2024

MNI Chile Central Bank Review - July 2024

Executive Summary

  • The Board of the Central Bank of Chile decided to keep the monetary policy interest rate unchanged at 5.75%.
  • The decision was unanimous and marks a marginal hawkish surprise given most analysts expected a 25bp cut.
  • The board reiterated that the bulk of interest cuts for 2024 are expected to have been accumulated and expects the MPR will continue to be reduced throughout the policy horizon, at a pace dependent on the evolution of the data.
  • Analysts remain in agreement that there will be further rate cuts this year, with year-end rate forecasts ranging between 5.00-5.50%.

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