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.
MNI Chile Central Bank Preview - June 2022
Executive Summary
- The BCCh are unanimously expected to continue their tightening cycle at the June meeting.
- While the consensus agrees that the hiking pace will be reduced, forecasters remain split between whether the committee will opt for a 75bp increase or a bolder 100bp move.
- Focus will quickly turn to the central bank’s June Monetary Policy Report which will be published on Wednesday, June 08.
Click to view the full preview: MNI BCCh Preview - June 2022.pdf
Headline Annual Inflation Surges Above Double Digits
April CPI registered at 10.5% Y/y which was another substantial beat of the median surveyed estimate of 10.1% and up from 9.4% in the prior month. While the May data will not be published until after the BCCh decision, analysts expect the gauge to print around 11.4%. The latest BCCh minutes stated there’s evidence of increased short-term price pressures and that the recent global shocks may indicate persistent above-target inflation.
June IPOM Likely to Provide Clarity On Policy Path
The BCCh committee are likely to discuss the multiple hiking options on Tuesday, as they have done at previous meetings. It seems clear among sell-side analysts that the hiking pace will be reduced once more as the central bank gets nearer to the end of their tightening cycle. The June Monetary Policy Report (IPOM) will be published the day after the statement and together with updated inflation forecasts, market participants will monitor adjustments to the interest rate corridor.
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.