MNI Chile CB Review – Oct 25: On Hold, Easing Bias Maintained

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Executive Summary

• The Board of the Central Bank of Chile decided to keep the monetary policy interest rate unchanged at 4.75%, as expected, in a unanimous decision.
• The statement continued to strike a cautious tone, with the Board noting that inflation and activity have evolved as expected, but that risks to the inflation outlook remain. As such, it will continue to collect more information before considering further interest rate cuts towards neutral.
• Analysts still see scope for further easing, with the next cut potentially coming in December, but with risks tilted towards the possibility of a later move.