Chile Holds Rates, Mexico Next

Chile’s central bank chose to maintain the benchmark interest rate at 5.25%, in line with the market’s expectations. In a statement, the bank cited slowing global growth, and says that volatility could be worse than expected, with implications for Chilean growth, inflation and monetary policy. In a recent poll taken by the central bank, most analysts said they expect a cut to 5.0% by the end of the year. Mexico is scheduled to make its interest rate decision today. At its last meeting, Banxico held the benchmark rate at 4.5%, through many, such as Morgan Stanley see the door open for a 25bp cut by the end of the year.