Free Trial

Santander See Key Rate At 6.00% By Year-End

CHILE
  • The decline in activity, the exchange rate appreciation of recent weeks and less external pressure will contribute to inflation continuing to fall throughout the year and closing at around 4.75%. If this scenario occurs, the conditions will exist for the Central Bank to begin the process of lowering the TPM at the beginning of the second quarter.
  • Inflationary expectations on the policy horizon, one of the Council's great concerns, have already receded to levels close to the target. Thus, in Santander’s central scenario, they anticipate that, as in the cycle of increases, the cuts will be relatively aggressive and will take the principal rate to 6% by the end of this year.
  • This will allow real interest rates to moderate, which, despite lower growth prospects, have remained very high in recent months. This, in turn, would help prop up growth for 2024.

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.