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 - May 2023
Executive Summary
- The BCCh is expected to keep the policy rate unchanged at 11.25%. Despite headline inflation receding, central bank rhetoric combined with the persistence of high core inflation and inflation expectations solidifies the likelihood of the committee maintaining its current stance of monetary policy.
- However, several analysts are expecting that upcoming meetings will become much closer calls, and therefore the statement will be closely scrutinised for clues on when monetary easing could be expected.
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MNI Chile Central Bank Preview - May 2023.pdf
BCCh President Reiterates Rate Hold Pledge
Having recently remarked that the domestic economy has adjusted less than expected to tighter monetary policy, central bank President, Rosanna Costa, has reiterated her stance that the central bank will need to hold rates until the process of inflation convergence has consolidated. She also provided a warning that a premature rate reduction provided large risks.
Speaking on April 13, Costa stated that she was aware of the risks from tight monetary policy but warned against an early interest rate cut. The cost of a hurried rate reduction could be “tremendously high,” Costa told Bloomberg TV, allowing inflation and inflation expectations to rebound. She said there was a “certain asymmetry” between the risks of cutting too soon or too late, driving home the central bank’s recent hawkish bias.
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.