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MNI Chile Central Bank Preview - May 2024: Expected To Slow Easing Pace Further

The BCCh is widely expected to slow the easing pace further in May and cut the overnight rate by 50bp to 6.00%.

Executive Summary

  • The BCCh is widely expected to slow the easing pace further in May and cut the overnight rate by 50bp to 6.00%.
  • Increased uncertainty over the macro outlook and recent upside inflation surprises have prompted the central bank to adopt a more cautious stance as it moves into the latter stages of its easing cycle.
  • That said, the recent appreciation of the Chilean peso on the back of the surge in the copper price should ease concerns about the inflation outlook and reduces the need for any major shift in the policy stance at this juncture.

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MNI Chile Central Bank Preview - May 2024.pdf

BCCh President Costa Strikes More Cautious Tone

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Executive Summary

  • The BCCh is widely expected to slow the easing pace further in May and cut the overnight rate by 50bp to 6.00%.
  • Increased uncertainty over the macro outlook and recent upside inflation surprises have prompted the central bank to adopt a more cautious stance as it moves into the latter stages of its easing cycle.
  • That said, the recent appreciation of the Chilean peso on the back of the surge in the copper price should ease concerns about the inflation outlook and reduces the need for any major shift in the policy stance at this juncture.

Click to view the full preview:

MNI Chile Central Bank Preview - May 2024.pdf

BCCh President Costa Strikes More Cautious Tone

Keep reading...Show less