Chile | Central bank increases the policy rate to 3.50%, surprising part of the market

Summary

The CB increased the policy rate by 25bp to 3.50% and maintained the tone for monetary normalisation. The communiqué highlighted that the pace of future adjustment will be paused and data dependent. All in all, we believe the CB will consider a policy normalisation of at most two additional hikes of 25bp in its baseline scenario update that will be released next week.

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