Latin America Update
Rates on hold as Chile’s economy regains some momentum
Chile’s central bank (CBC) kept interest rates unchanged at 5.0% last night in response to a small rebound in domestic economic activity and a temporary recovery in global market sentiment. The latest move appears to be consistent with our expectation for a gradual, as opposed to aggressive, easing cycle in 2012 and we anticipate a further 100bps of cuts by year-end.
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