Chile cenbank to cut interest rate this week -poll of traders
SANTIAGO, Dec 3 (Reuters) - Chile's central bank is expected to lower interest rates to 1.63% this week and cut again in January, a monthly poll of 60 traders showed on Tuesday, yet another sign of the economic toll taken by weeks of unrest in the South American nation.
Chile's peso CLP=CL plunged against the dollar last week, twice hitting historic lows amid protests over inequality that have left at least 26 dead. Businesses have reported at least $1.5 billion in losses.
Tourism, transportation and commerce have all been hobbled.
Traders predict rates will settle at 1.50% through the first half of next year as the central bank seeks to stimulate the sputtering economy.
Traders predicted consumer prices would rise slightly in November and December. Annual inflation is expected to hit the bank's target of 3.00%, according to the poll.
The Chilean government announced plans on Monday to roll out a $5.5 billion economic recovery plan and issue more debt in foreign currencies after rioting and protests triggered the worst monthly contraction in a decade.
Median estimate (pct)
Inflation in Nov
Inflation in Jan
Inflation over 12 months
Interest rate in December
Interest rate in March 2020
Interest rate in 12 months
Exchange rate in 28 days (peso/$)
(Reporting by Dave Sherwood; Editing by Catherine Evans)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.