The Central Bank of Chile (CBC) last night hiked interest rates by 50bps to 2.5%, as expected. In the near-term, the strong pace of growth means that policymakers will probably continue to raise rates to a more neutral level of 4%. But with concerns over the strength of the peso and a global slowdown set to build, there remain good reasons to think that rate hikes will be more modest than the market expects.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.