4 Mar 2015
CLP outlook remains neutral – BAML
FXStreet (Edinburgh) - Analysts at BAML keep their neutral stance on the Chilean peso in the near term.
Key Quotes
“December activity and January inflation surprised on the upside and raised th question of whether we are witnessing an economic rebound that will bring more inflationary pressures. We doubt it. We mark to market our 2015 growth forecast to 2.6% from 2.4% before”.
“We recommend a neutral stance on the Chilean peso. We forecast the spot exchange rate to depreciate toward 640 in 2015, in line with currency forwards”.
“The exchange rate has already weakened significantly in real terms and the trade balance has improved markedly since 2013. We estimate the exchange rate is only about 2% overvalued based on current account imbalances, significantly less than most other Latin American economies”.
Key Quotes
“December activity and January inflation surprised on the upside and raised th question of whether we are witnessing an economic rebound that will bring more inflationary pressures. We doubt it. We mark to market our 2015 growth forecast to 2.6% from 2.4% before”.
“We recommend a neutral stance on the Chilean peso. We forecast the spot exchange rate to depreciate toward 640 in 2015, in line with currency forwards”.
“The exchange rate has already weakened significantly in real terms and the trade balance has improved markedly since 2013. We estimate the exchange rate is only about 2% overvalued based on current account imbalances, significantly less than most other Latin American economies”.