Chile: The monetary policy report will attract attention this week.

Florencia Vazquez,Gustavo Arruda,Marcelo Carvalho,Nader Nazmi - Market Economics
Daily Latam Spotlight | 17 Dec 2012 06:00 |

Chile: The monetary policy report will attract attention this week.

CHILE

In a week with no economic data scheduled to be released, the monetary policy report (IPoM) will attract attention. The central bank is scheduled to unveil the IPoM on Tuesday. While the monetary authority has continued to signal lately that it remains comfortably on hold near term, the IPoM will be looked at closely for relevant information on the official views about the medium-term outlook for growth and inflation. In particular, potential changes to the official real GDP and CPI forecasts will attract attention. The official characterization of the recent moderation in the sequential pace of real GDP will be also worth reading, as well as trends for the current account result. Recall that several comments on the widening current account deficits have been made recently by authorities.

We continue to expect BCCh to embark on a gradual tightening cycle in H2 2013, as growth and price pressures accelerate.