Chile: Stronger recovery to keep BCC on the side-lines

Chile’s economy is recovering more quickly than we had previously expected and, as a result, we are revising up our 2020 GDP growth forecast to -5.5% (previously -7.0%). The stronger rebound has eased pressure on the central bank to loosen monetary policy further – we now expect policy settings to remain unchanged into 2022. This view is still more dovish than the path discounted in financial markets.