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 2023
Executive Summary
- The BCCh is broadly expected to keep the policy rate unchanged at 11.25%.
- As the process of disinflation shows increasingly positive signs, consensus forecasts now point to an easing cycle commencing in July, however, one analyst is notably calling for a cut at this meeting.
- This places significant focus on the decision, the statement and the central bank’s quarterly monetary policy report which will all be closely scrutinised for clues on how much easing should be expected across the second half of the year.
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MNI Chile Central Bank Preview - June 2023.pdf
Statement Language In Focus For Signs Of Policy Shift
Up to this point, the central bank board have remained steadfast in its approach to combatting inflation, stating that they will maintain the current policy stance until the state of the macro-economy indicates that “the process of inflation convergence to the 3% target has been consolidated.” The minutes from the May meeting reiterated that there’s no evidence that the domestic inflation slowdown had been consolidated, even as headline consumer price and consumption readings head in the right direction. However, news on the inflation front has improved and with both economist and traders surveys pointing to monetary easing commencing in July, there is consensus that this week’s decision and monetary policy report (IPoM) will be used to cement expectations for an upcoming policy shift.
Figure 1: Headline CPI Dips Sharply To 8.7% Y/y (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.