Chile’s central bank is expected to start a monetary easing cycle this month and cut its interest rate by 75 basis points to 10.50% as inflation continues to slow.
Chile’s benchmark rate is expected to drop to 5.5% in the next 12 months, according to “reuters.”
According to a poll of traders, traders expect this month’s inflation to come in at 0.2%.
Earlier, Chile’s annual inflation reached its lowest level in a year and a half in June, supporting views that the central bank will soon start cutting interest rates.
Chile’s 12-month inflation was 7.6% in June, down from 8.7% in the previous month and the lowest since December 2021, data from statistics agency INE showed.
Inflation in the world’s largest copper producer remains above the central bank’s target range of 2% to 4% but has slowed sharply from the three-decade highs reported in 2022.
