Chile is in calibration mode. The Central Bank has paused again, headline inflation is easing but core remains sticky and the Peso is holding steady under external pressure. The labour market is stuck, regulation keeps edging forward and with the election now weeks away the politics are doing most of the heavy lifting. Chile is still one of LatAm’s safer bets but the margin for error has narrowed.
Monetary PolicyThe Central Bank held rates at 4.75% at its September 9th meeting, voting unanimously to pause. The statement pointed to global uncertainty and stubborn core inflation in services as the key brake on further easing.
In July we flagged the first 25 bps cut as a turning point after months of holding at 5%, and in August we noted that further easing would depend on inflation dynamics. September confirms that caution.
Inflation & ForecastsHeadline CPI eased to 4.0% year on year in August, down from 4.3% in July. The September IPoM, (Informe de Política Monetaria - the Monetary ...
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