Chile goes back to the drawing board

The surprisingly strong rejection of Chile’s proposed new constitution has eased concerns about a radical shake up of the country’s economic model. But the constitutional process is set to continue and, while any new charter is likely to be more moderate, it would probably still enshrine a bigger role of the state in the economy. Meanwhile, inflation across the region is at or close to a peak and tightening cycles are drawing to a close. But with price pressures still acute, monetary policy will be kept tight for a while yet.