Interest Rates To Reach 2.50% By Year-End

Chile's six-month breakeven inflation rate reversed the upward trend in place since the turn of the year on April 8 following the release of March consumer price inflation (CPI) data, which surprised to the downside at 0.3% year-on-year. Despite marking a strong technical move, the downtick does not match the underlying economic dynamics in play since the devastating earthquake of February 27, in our view, and any further downside in the index is likely to be short-lived.

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