Chile Seen Hiking Rates to 5.25%

Chile’s central bankers will likely hike the benchmark interest rate by 25bp to 5.25% this Thursday, according to Wall Street estimates. Consensual remarks on the increased pace of economic expansion following the monetary policy committee’s June meeting and a subsequent rise in inflation for the month have economists betting on a quarter-point hike, even possibly a 50bp rise. Chile’s benchmark rate has been at 5.00% since January, when it was lowered from 5.25%.