SANTIAGO (Reuters) – Chile is expected to keep its benchmark interest rate at 11.25% in its December meeting, a central bank poll of analysts suggested on Thursday, as the world’s top copper producer battles to rein in high inflation.
The rate is then expected to drop to 8% within 11 months, according to the poll. Chile registered its lowest monthly inflation in eight months on Tuesday, suggesting that inflation may finally be slowing down.
According to the survey, Chile will see 0.4% inflation in November and reach 5.8% in 11 months, above the central bank’s target of 2.0%-4.0%.
Gross Domestic Product is expected to drop by 2.5% over the fourth quarter, according to the findings.
The analysts on average expected the peso to trade at 912.50 units per dollar in two months and 880 units in 11 months. The peso is currently trading at about 906 units per dollar.
(Reporting by Fabian Cambero; Writing by Alexander Villegas; Editing by Angus MacSwan)
