Chile Economic Outlook. Fourth Quarter 2016

Summary

We are maintaining our growth projections for 2016-17. Inflation would end the year close to the Central Bank’s target and to fluctuate below 3% in 2017. We are projecting at least two cuts in the Monetary Policy Rate by 1Q17. Cuts in the Monetary Policy Rate are needed in order to bring about a more competitive exchange rate and to anchor inflation.

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