The stronger-than-expected 1.0% q/q rise in Chile’s GDP, alongside the brightening economic outlook, means we are raising our above-consensus 2021 growth forecast to 10% (from 9%). We also expect that the central bank’s tightening cycle will be more aggressive, with the policy rate set to rise to 1.50% by end-2021 (previously 1.25%) and 3.25% by mid-2022, from 0.75% now.
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