Quotes from RBS Global Banking & Markets:
- The BCCh decision in Chile is tomorrow and we anticipate no change in interest rates, though there is a risk of a 25bp interest rate cut.
- Even if the BCCh refrains from cutting at their April meeting, we expect the easing bias to remain in place and that more easing is coming as growth indicators continue to suggest a quicker slowdown of economic activity. We think another 25bp cut is coming in 2Q, most likely in May.
- Even though BCCh has lifted its year-end inflation projections, which is the key reason we expect the BCCh to pause its easing cycle, growth concerns are weighing down more and we believe the BCCh is comfortable in providing more stimulus as the output gap remains positive.