Chilean central bank seen ‘on hold’ this week – BBH

In opinion of analysts at BBH, the Chilean central bank is expected to keep rates unchanged at its monetary policy meeting later in the week.

Key Quotes

“Chile central bank meets Thursday and is expected to keep rates steady at 2.5%”.

“May CPI rose 2.6% y/y, the lowest since November 2013 and within the 2-4% target range since August”.

“The bank has signaled the end of the easing cycle after 100 bp of easing this year, but the data remain weak. If the recovery does not materialize, we would not rule out further easing”.