June 20, 2008
Chile’s Central bank will likely raise interest rates 50bp in July and 25bp
Chile’s Central bank will likely raise interest rates 50bp in July and 25bp in August, JPMorgan says in a research report, lifting the benchmark to 7.5% by the end of 2008. The shop attributes the expected moves to the 10.4% minimum wage increase, as well as a high CPI reading anticipated for June. It also lowered its 2009 GDP growth forecast to 3.50% from 3.75%, owed to the expected monetary tightening.