In Chile, convergence of activity and prices to their long-term levels is postponed until 2016

Also in Chile we anticipate a 25bp cut at today’s meeting, taking into account the weakness in aggregate monthly activity and the transitory elements behind the surge in inflation figures, and an additional 25bp cut in October, both in line with the results of the central bank’s survey revealed yesterday. We believe that further monetary stimulus will be necessary over the rest of the year, with rates ending 2014 at 2.75%.

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