*Chile’s central bank (BCCh) has unanimously opted to keep interest rates at 5.75%, a decision which signals a pause to continuous interest rate reductions which have taken place since last July. According to a BCCh statement, the decision was in line with its strategy of continuing to reduce the key rate amid “the horizon of monetary policy at a pace that takes into account an evolution of the macro-economic scenario and its implications for inflation”. It highlights that economic activity in May was less than that projected in its latest monetary policy report (IPoM) released in June, while it estimates inflation is running at 3.8% currently, although it highlights forecasts that inflation will return to 3% within two years. The decision was expected by just four of 20 analysts in a survey by Bloomberg. The other 16 forecast a quarter-point cut.
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