Gold prices fall as geopolitical tensions ease; U.S. CPI looms
Investing.com - Bank of America expects Chile’s central bank to cut interest rates this month, citing low inflation, lower oil prices, and soft economic activity as key factors supporting monetary easing.
The bank forecasts three 25 basis point rate cuts through the first quarter of 2026, with two cuts occurring in the second half of this year and another in early 2026, bringing the terminal rate to 4.25%.
Recent de-escalation in the Middle East conflict has reduced what the central bank previously identified as the biggest risk factor in its last statement, further clearing the path for rate adjustments.
In political developments, Daniel Jara, the Communist Party candidate, won the ruling Left party primaries, which Bank of America notes has increased economic policy uncertainty ahead of the November presidential and congressional elections.
The anticipated rate cuts would occur ahead of these November elections, potentially influencing the economic landscape as Chileans prepare to vote.
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