Analysts project that GDP could fall by 9% during 3rd quarter in Chile

A central bank poll told analysts that the benchmark interest rate could remain at its technical low of 0.5% for two years in Chile, then it may rise by 1%. The governing body agreed in late March to cut the Monetary Policy Rate (MPR) to 0.5% due to the weakness of the economy and the uncertain future due to the pandemic. Consumer prices for their part could show a variation of 0.1% in August and of 2.5% 11 months ahead. Economic activity may fall by 12% in July, while in the third quarter the GDP could fall by 9%, according to the Economic Expectations Survey (EEE).

Source: Reuters