No further tightening seen in Chile – BBH

According to analysts at BBH, the Chilean central bank could keep its rates unchanged at its meeting later in the week.

Key Quotes

“Chilean central bank meets Tuesday and is expected to keep rates steady at 3.5%”.

“It has been on hold since the last 25 bp hike back in December”.

“The real sector is weak, while inflation has fallen. This will allow the bank to remain on hold for now. Chile then reports Q1 GDP Wednesday, which is expected to grow 1.8% y/y vs. 1.3% in Q4”