Chile Seen Easing to 1.0%

Chile’s central bank is seen cutting 25bp to 1.00% today, according to market consensus. Bank of America-Merrill Lynch forecasts a 25bp easing and sees no more cuts for the rest of the year. Barclays, whose estimate is also in line with consensus, says that downside risks to the forecast, come more from inflation than from economic activity, as food and fuel prices have contributed to drops in inflation. According to the central bank, in May, monthly inflation was down 0.3%. Annual inflation stands at 3.0%.