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MNI Chile Central Bank Review - June 2024: Bulk of 2024 Cuts Complete

MNI Chile Central Bank Review - June 2024

MNI Chile Central Bank Review - June 2024

Executive Summary

  • The Board of the Central Bank of Chile decided to cut the monetary policy interest rate by 25bp to 5.75%, as expected.
  • The decision was split 4-1, with Vice President Griffith-Jones voting for a larger 50bp cut.
  • The statement signalled that the central bank would continue to cut interest rates, consistent with the central scenario of the monetary policy report, although the bulk of the cuts for this year have now been completed.
  • Analysts see scope for further gradual rate cuts ahead, but with risks tilted higher dependent on the incoming inflation data and CLP dynamics.

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