November 11, 2009
Chile’s central bank is expected to keep its monetary policy rate on hold a
Chile’s central bank is expected to keep its monetary policy rate on hold at a record low of 0.50% today. Morgan Stanley says the bank has signaled it may start a slow normalization of interest rates in Q2 2010 at the earliest, which is consistent with its view that the bank is in no hurry to hike rates. BofA-Merrill Lynch believes a drop in inflation supports a freeze on rates. Meanwhile, Bulltick thinks the bank will start hiking early in 2010 and be one of the first in the region to do so.