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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
The full preview with analyst views can be found here:
MNI BCCh Preview- March 2021.pdf
The Chilean Central Bank are expected to keep their overnight rate unchanged at 0.5%. The positive growth outlook and inflationary pressures have prompted some analysts to expect a marginally hawkish communiqué, however, the most recent surge in pandemic related pressures have highlighted the short-term need for continued accommodative policy.
- State of Play: Chile Q4 GDP rose 6.8% q/q, beating expectations, with the annual figure printing flat against consensus for a contraction of 0.4%. Analysts continue to expect growth forecasts to be revised higher due to the ongoing global recovery, surging copper prices and a successful roll-out of the vaccination program.
- Despite January CPI picking up to 3.1% y/y, February figures reverted back to 2.9%. Upgrades to the 2021 year-end inflation outlook are expected in the policy report due Wednesday, reflecting the rise in oil prices since Q4.
- Markets - Rising U.S. yields have heavily influenced market interest rate pricing in Latin America and Chile has been no exception. At the prior meeting, only about 10 basis points of tightening was priced in for year-end 2022. Since then, 2-year swap rates have risen roughly 70 basis points. Over the same period, global emerging market central banks have shifted to a more hawkish stance, most notably with Brazil providing a surprise 75 bps rate hike, potentially placing BCCh slightly behind the curve.
Source: MNI/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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