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5 May 2015
Chile points to tighten its economy in Q4 2015 – Scotiabank
FXStreet (Edinburgh) - In the opinion of Eduardo Suarez, Chief FX Strategist at Scotiabank, the Chilean central bank could start its tightening cycle in the last months of the current year.
Key Quotes
“Today’s monthly economic activity release will further allow us to gauge the extent at which the Chilean economy is slowing (the data is for the same month as the soft manufacturing / retail sales data we got last week)”.
“Consensus is looking for a 1.1% y/y print, down from a +2.0% y/y release for February”.
“As we noted last week, we don’t think one month of soft data is likely enough to change the bias of the central bank, which has signalled it will likely kick off its tightening cycle towards the end of the year, but it could turn it more cautious”.
Key Quotes
“Today’s monthly economic activity release will further allow us to gauge the extent at which the Chilean economy is slowing (the data is for the same month as the soft manufacturing / retail sales data we got last week)”.
“Consensus is looking for a 1.1% y/y print, down from a +2.0% y/y release for February”.
“As we noted last week, we don’t think one month of soft data is likely enough to change the bias of the central bank, which has signalled it will likely kick off its tightening cycle towards the end of the year, but it could turn it more cautious”.