Latin America Economics Update Chile’s tightening cycle to be brief Chile’s decision to raise interest rates last night is likely to be followed by another hike soon, but the bigger picture is that the tightening cycle is likely to be short. Meanwhile, although the... 16th October 2015 · 1 min read
Latin America Economics Update Recent weakness in Chilean activity a temporary blip Economic activity data from Chile have been weak in recent months, but we don’t think this marks the start of a deeper downturn. The softer data have been largely the result of various temporary... 5th October 2015 · 1 min read
Latin America Data Response Chile Consumer Prices (Aug.) The further rise in Chilean inflation last month, to 5.0% y/y, coming on the back of the hawkish message in the central bank’s latest Inflation Report, suggests that rate hikes may come sooner than we... 8th September 2015 · 1 min read
Latin America Data Response Chile IMACEC (Jul.) The stronger-than-expected increase in Chile’s IMACEC activity indicator in July was encouraging, even more so given that activity was affected by strike action at state owned mining company, Codelco... 7th September 2015 · 1 min read
Latin America Data Response Chile GDP & Current Account (Q2) The small fall in Chile’s GDP in the second quarter was partly the result of floods in the north of the country, but not entirely. All components of domestic demand contracted, suggesting that the... 18th August 2015 · 1 min read
Latin America Economics Update Chile and Peru still happy to hold fire Interest rates in both Chile and Peru were left unchanged yesterday and policymakers in both countries are still giving little indication that they expect to tighten monetary policy anytime soon... 14th August 2015 · 1 min read
Global Markets Update Copper prices could eventually boost equities in Chile and Peru Our bullish view on copper prices suggests that stock markets in Chile and Peru could outperform over the medium-term, but persistently low oil prices look set to be an unwanted headwind for equities... 5th August 2015 · 1 min read
Latin America Data Response Chile Retail Sales, Ind. Prod. & Copper Prod. (Jun.) Activity data from Chile were stronger than expected in June but, as a result of softer figures for April and May, we still think that GDP growth in Q2 will be weaker than in Q1. 30th July 2015 · 1 min read
Latin America Economics Update Chile’s economic recovery falters After a promising start to the year, Chile’s economy probably contracted in the second quarter due to the effects of the recent floods in the north of the country as well as a mini political crisis... 21st July 2015 · 1 min read
Latin America Economics Update Chile: interest rate hikes still some way off Interest rates in Chile were left unchanged at 3.00% last night and the more dovish tone of the accompanying statement supports our long-held view that rate hikes are still some way off. We do not... 15th July 2015 · 1 min read
Latin America Data Response Brazil & Chile Consumer Prices (Jun.) The rise in inflation in Brazil to 8.9% y/y last month probably seals the deal for another 50bp hike in the benchmark Selic interest rate at this month’s COPOM meeting. Elsewhere, inflation in Chile... 8th July 2015 · 1 min read
Latin America Data Response Chile Retail Sales, Ind. Prod. & Copper Prod. (May) Activity data from Chile released today were a mixed bag – while retail spendingremained buoyant, industrial output fell sharply. All told, the recent run of softerdata means that our GDP Tracker is... 30th June 2015 · 1 min read
Latin America Economics Update A closer look at Chile’s current account improvement Chile is the only country in Latin America that has managed to reduce its current account deficit since the “Taper Tantrum” of 2013, which makes the economy less exposed to tightening external... 16th June 2015 · 1 min read
Latin America Economics Update Policymakers in Chile and Peru likely to hold fire until 2016 Interest rates in Chile and Peru were left unchanged last night and with both economies in the early stages of recovery, policymakers are likely to delay rate hikes until next year, even if the Fed... 12th June 2015 · 1 min read
Latin America Economics Update What next for crisis-stricken Venezuela? With Venezuela’s economic crisis intensifying, attention is starting to focus on how the country might get out of this mess. Two options have been suggested in recent weeks – one is the establishment... 9th June 2015 · 1 min read
Latin America Data Response Chile Consumer Prices (May) The further decline in inflation in Chile last month means that the annual rate is now right on the upper bound of the target range, having spent over a year above the 4% threshold. The continued fall... 8th June 2015 · 1 min read
