LatAm Daily | COPOM signals that the Selic will remain stable, but highlights upside risks

Summary

The minutes suggest that the tightening cycle is over, although the inflation forecast for the end of 2016 is above the target. However, a rise in the SELIC may happen if inflation expectations deviate from the target. Chile’s June nominal wages grew 0.2% while real wages fell 0.3% MoM reinforcing our view on the sluggishness in the labour market and consumption.

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