Rate Hikes Imminent

Although April's consumer price inflation print came in slightly below expectations at 0.9% year-on-year, pressure on the Chilean authorities to raise interest rates at today's monetary policy meeting is gaining pace. Much of this pressure is being driven by in the Banco Central de Chile (BCC)'s own more hawkish rhetoric, in our view, with the minutes from April's monetary policy meeting indicating that the BCC is poised to move its monetary tightening schedule forwards to Q210.

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