Chile Expected to Raise Rate

Chile’s central bank is expected to raise its rate by 25bp to 5.25% today, according to market consensus. “Following three consecutive monthly 50bp rate hikes and a policy rate level that is now at 5.0%…we expect the central bank to slow the pace of rate normalization” Goldman Sachs says in a report. Morgan Stanley also predicts a 25bp hike. “Though momentum in the economy remains strong, inflation has remained well behaved and resolute central bank action has succeeded in bringing down inflation expectations; moreover, in its most recent minutes the central bank indicated some improvement in the inflation outlook,” the shop says.