Chile Inflation Forecast Rises to 3.7%
Financial traders surveyed by Chile's central bank now expect 3.7% inflation over 12 months and a 4.5% policy rate with no cuts for two years. The post Chile Inflation Forecast Rises to 3.7% appeared first on The Rio Times .
Market traders in Chile have forecasted inflation to reach 3.7% over the next 12 months, signaling no rate cut for at least two years. The Banco Central de Chile, the country's central bank, published these findings in a survey of 62 financial operators on October 22. Traders expect the key interest rate, known as the TPM, to remain at 4.5% for the following 24 months, following a meeting of the board on October 27.
The central bank set its inflation target at 3%, so traders now anticipate prices to exceed this threshold for the next two years. Earlier surveys had already predicted a prolonged pause in rate cuts, as detailed by La Tercera on September 3. Inflation expectations rose to 3.2% for the period between 13 and 24 months, compared to 3.1% in late September and 3.0% earlier in the month.
The survey results indicate that traders are anticipating a weaker peso, which would have implications for Chilean exports and imports from the United States.
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