Chile Rates Seen Up 25bp

Market consensus points to Chile’s central bank tightening its rate by 25bp to 3.50%. Celfin, which agrees with consensus, says that inflation currently stands at 2.7%. “Keep in mind the central bank’s mandate is to keep inflation between 2.0%-4.0% annually,” Celfin says. Morgan Stanley also agrees with a 25bp hike, saying that inflation expectations have deteriorated since the last policy meeting.