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Chile central bank to cut interest rate to 1.75% in October - poll

Credit: REUTERS/IVAN ALVARADO

Chile's central bank is expected to cut its main interest rate for the third time this year, to 1.75 percent in October, according to a monthly poll of 50 analysts published by the bank on Thursday, as growth and inflation continue to sputter in the world's top copper producer.

SANTIAGO, Oct 10 (Reuters) - Chile's central bank is expected to cut its main interest rate for the third time this year, to 1.75 percent in October, according to a monthly poll of 50 analysts published by the bank on Thursday, as growth and inflation continue to sputter in the world's top copper producer.

The falling price of copper and continuing trade tensions have already prompted the bank to twice slash interest rates since June, in an effort to spur investment and economic activity.

Analysts see the trend of expansive monetary policy continuing for the next year, even as year-on-year growth is predicted to hit 3.00% by December 2020, according to the poll.

Annual inflation will reach 2.90% over the next 11 months, according to the poll, still at the low end of the Central Bank's target range.

Median estimate (pct)

Inflation in October

0.50

Inflation over next 11 months

2.90

Interest rate in October

1.75

Interest rate in 5 months

1.75

Exchange rate in 2 months (peso/$)

710

Imacec in September (y/y)

3.60

GDP in Q4 2019 (y/y)

3.00

(Reporting by Dave Sherwood; Editing by Hugh Lawson)

((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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