Chile starts reducing interest rates in Latin America with ‘huge’ cut – 07/30/2023 – Nelson de Sá

In the Chilean daily La Tercera, “By unanimity, the Central Bank begins the process of reducing interest rates with an aggressive cut of 100 basis points” (below). He heard from professionals in the country’s financial market: “With this, we increase our expectations for the next two cuts”, which are also sharp.

On Bloomberg, “Chile Delivers Huge Cut [jumbo] in interest rates as LA turns to easing cycle”. In the text:

“The cut sends a strong message that rates will plunge. It is the strongest signal that most of Latin America is benefiting from early and aggressive rate hikes during the pandemic, as pressures on prices. Brazil is set to cut borrowing costs from next week, with Peru and Mexico following suit and Colombia close behind. On the other hand, monetary authorities in developed economies, including the United States and Europe, have tightened policy again this week.”

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