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Chile central bank to cut bank rate again in December - poll

Chile's central bank is expected to cut its benchmark interest rate for the third time this year to 1.75 percent by December, according to a monthly poll of 47 analysts published by the bank on Tuesday, as growth and inflation continue to sputter in the world's top copper producer.

SANTIAGO, Sept 10 (Reuters) - Chile's central bank is expected to cut its benchmark interest rate for the third time this year to 1.75 percent by December, according to a monthly poll of 47 analysts published by the bank on Tuesday, as growth and inflation continue to sputter in the world's top copper producer.

Chilean central bank policymakers last week revised down their 2019 year-end inflation forecast to 2.7%, from a previous prediction of 2.8%. Concerns over lagging inflation and global trade tensions prompted the bank to twice slash interest rates since June.

Analysts see the trend of expansive monetary policy continuing through much next year, even as year-on-year growth is predicted to hit 3.10% by December 2020, according to the poll.

Annual inflation will reach 2.80% over the next 11 months, according to the poll, still the low end of the Central Bank's target range.

Median estimate (pct)

Inflation in September

0.30

Inflation over next 11 months

2.80

Interest rate in October

2.00

Interest rate in 5 months

1.75

Exchange rate in 2 months (peso/$)

710

Imacec in August (y/y)

2.90

GDP in Q3 2019 (y/y)

3.20

(Reporting by Dave Sherwood Editing by Peter Graff)

((dave.sherwood@thomsonreuters.com; +56 9 9138 1047, +56 2 2370 4224))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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