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MNI Chile Central Bank Preview: Time 2100GMT / 1800 Local / 1600ET

CHILE
  • Just under two hours until the BCCh decision.
  • The BCCh is widely expected to continue the aggressive pace of tightening with another 125bp rate hike on Tuesday, bringing the overnight rate to 4.00%.
  • The persistent upward surprises in CPI and the deterioration of inflation expectations should prompt the BCCh to continue their pursuit of normalising monetary policy.
  • Furthermore, the constructive current/prospective growth scenario and a depreciating peso fuelled by heightened political uncertainty confirms the need for strong action at the December meeting.
  • The full preview with analyst views can be found here:
  • https://roar-assets-auto.rbl.ms/documents/13125/MNI%20BCCh%20Preview-%20December%202021.pdf

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