MNI BRIEF: Trump Likely To Allow Powell To Serve Term - Moore

MNI: ECB CUTS KEY DEPOSIT RATE BY 25 BP TO 3.0%

MNI BRIEF: China To Keep Stabilising Housing Market - CEWC

MNI BRIEF: China Focus On Boosting Consumption In 2025

MNI BRIEF: China To Cut Rates, Boost Borrowing-Work Conference

MNI China Daily Summary: Thursday, December 12

MNI: US JOBLESS CLAIMS +17K TO 242K IN DEC 07 WK

MNI: US NOV FINAL DEMAND PPI +0.4%, EX FOOD, ENERGY +0.2%

MNI: CANADIAN OCT BUILDING PERMITS -3.1% MOM

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Santander Estimate New Moderation in Pace of BCCh Rate Cuts

CHILE
  • Following Friday’s inflation data and central bank minutes, Santander see next week’s discussion focused on two cut options: -50 bp and -25 bp, with a somewhat greater inclination towards the latter at this juncture.
  • On the one hand, Santander believe recent economic indicators do not suggest a very relevant change in the central scenario, which will be updated in the June Report. Although there are upward pressures on inflation due to the adjustment of electricity rates, its impact would be limited and does not alter convergence in the two years.
  • However, Santander note the external scenario presents high volatility, which validates a strategy of moderation in rate cuts (-25 bp), with the additional benefit that it is once again the option with the highest consensus in the market.
  • An additional issue highlighted in the minutes is the high level of rates that the market anticipates for next year. It is mentioned that “in real terms, this implied a rate above the ceiling of the current neutral MPR estimate range.” Although it is noted that this could be due to market expectations of a higher neutral MPR or lower cuts by the Fed, it is possible that this will motivate greater emphasis on forward guidance to be included in the next Report.
EM BulletHomepagemarkets-real-timeBulletEmerging Market News
EM BulletHomepagemarkets-real-timeBulletEmerging Market News

To read the full story

Close

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.