Interest rates in Chile were left unchanged last night at 3.00% and, although policymakers continued to signal the end of the easing cycle, we still think that it has a little further to run. With inflation set to fall back into target and economic growth likely to stay weak during 2015-16, we’re sticking with our forecast for another 50bp of cuts in the current cycle to 2.50%. By contrast, the consensus expects rates to rise to 4.25% by end-16.
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