Chile’s central bank to lower key rate to 8.75% in October

Chile’s key interest rate is expected to fall 75 basis points to 8.75% in October and 8 percent in December, a survey of analysts showed.
 
“The governing institute would continue to lower its Monetary Policy Rate (MPR) to reach 7.0% in five months,” according to the Economic Expectations Survey (EEE).
 
Chile will register inflation of 0.5% this month and next, which will accumulate 3.5% over an 11-month horizon, within the Central Bank’s tolerance range of between 2.0 and 4.0%, according to the survey.
 
The economy would fall 0.2% in August, while gross domestic product (GDP) would rise 0.3% in the third quarter.
 
The Chilean peso would trade at 860 units per dollar in two months and 840 per dollar in 11 months.