Chile Seen Easing 175bp-200bp

Chile is expected to continue significant loosening at today’s its monetary policy meeting, with analysts forecasting a 175bp-200bp cut. Credit Suisse, which previously thought the rate would be cut by 100bp, raised its forecast to 175bp. Bulltick Capital forecasts a 200bp cut as inflation has consistently posted negative monthly numbers since November 2008 and growth slows. “We see this current easing cycle as a front-loaded one that will take the benchmark policy rate to 2.25% by the end of the year,” the shop says. In February, the central bank cut the rate by 250bp to 4.75%.