INSUBCONTINENT EXCLUSIVE:
CB plans to reduce interest rates from 10.25% to 7.75-8% by year-end.He noted that current international and domestic data do not indicate a
significantly different scenario from what was expected when rate cuts started in July.Although the market anticipates at least 5 more
percentage points of cuts within a year, some analysts warn that a weak peso could obstruct the inflation easing towards the 3%
target.Chilean Central Bank to continue interest rate cuts despite peso decline
(Photo Internet reproduction)The peso depreciated over 8% from early July until the Finance Ministry increased dollar sales last week.This
depreciation fuels inflationary pressure by making imports costlier, impacting Chile severely as it imports all its fuel.Recent heavy rains
caused flooding in regions known for fruit and vegetable production, leading President Gabriel Boric to declare a state of
or monetary policy strategy.Annual inflation in Chile decreased significantly from over 14% in 2022 to 6.5% in July, with core inflation
gradually slowing to 8.5%.
