The larger-than-expected decline in inflation in Chile to an 18-month low of 7.6% in June seals the deal on an interest cut at the central bank’s next meeting later this month. If anything, policymakers may deliver a bigger interest rate cut than the 50bp we’re currently expecting. Meanwhile, inflation in Mexico eased too last month, but we remain of the view that interest rate cuts there are only likely to come onto the cards around the turn of the year.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services