Chile Central Bank Seen Holding Rate Thursday

Chile’s Central Bank will decide to hold its benchmark interest rate at 5.0% for a six consecutive month on Thursday, according to a survey of analysts carried out by Dow Jones. A note from Goldman Sachs commented that, “the communiqué that will follow the [Monetary Policy Committee] meeting should be more hawkish than the one issued after the May meeting in order to prepare the market for higher rates ahead as the May data on activity and inflation surprised on the upside and labor costs continue to go up (tightening labor market).” A survey carried out by the Central Bank last week also saw analysts predict the rate would remain unchanged this month.