12 Jun 2015
Chilean central bank keeps the hawkish stance – Scotiabank
FXStreet (Edinburgh) - Eduardo Suarez, Chief FX Strategist at Scotiabank, reviewed the recent statement by the Chilean central bank (BCCh) after its monetary policy meeting.
Key Quotes
“The BCCh issued a very brief statement last night after its MPC meeting, where it left most of its message intact”.
“On the external front, the central bank noted the gradual rebound in global growth, but also highlighted rising global interest rates, as well as diminishing capital flows into EM”.
“On the domestic front, the BCCh described the recent performance of the Chilean economy as “in line with the Monetary Policy Report”, including inflation, which is expected to remain high for some time”.
“However, inflation expectations are seen as anchored, which probably explains why the bias of the central bank remained a vigilant pause”.
“The BCCh noted the slowdown in wage increases, and did not mention indexation this time. We think the statement was fairly consistent with recent communication, although maybe a little less hawkish”.
Key Quotes
“The BCCh issued a very brief statement last night after its MPC meeting, where it left most of its message intact”.
“On the external front, the central bank noted the gradual rebound in global growth, but also highlighted rising global interest rates, as well as diminishing capital flows into EM”.
“On the domestic front, the BCCh described the recent performance of the Chilean economy as “in line with the Monetary Policy Report”, including inflation, which is expected to remain high for some time”.
“However, inflation expectations are seen as anchored, which probably explains why the bias of the central bank remained a vigilant pause”.
“The BCCh noted the slowdown in wage increases, and did not mention indexation this time. We think the statement was fairly consistent with recent communication, although maybe a little less hawkish”.