Macro Analysis /

Chile: MPC says rate hike cycle will be aggressive, hikes GDP and inflation forecasts

    1 September 2021
    • MPC sees rate reaching neutrality (3.25%-3.75%) around mid H1 2022, previously it expected expansive policy to last two years
    • New guidance suggests rate hike cycle will be more aggressive than market expected
    • Policy strategy recalibration related to need to counter a misplaced fiscal policy bias and impact of idiosyncratic depreciation on inflation