30 Apr 2015
Weak data in Chile could prompt action by BCCh – Scotiabank
FXStreet (Edinburgh) - According to Eduardo Suarez, Chief FX Strategist at Scotiabank, the BCCh would closely follow the recent disappointment in the Chilean docket.
Key Quotes
“Yesterday’s data releases are likely to put into question the stabilization we had seen in the Chilean economy over recent months”.
“On the manufacturing front, consensus looked for a flat print (+0.2% y/y), and instead we got a relatively sharp contraction (‐2.8% y/y)”.
“On the retail sales side, while consensus looked for a +2.7% y/y expansion, we instead got a +‐0.4% y/y print”.
“While we think one data point is likely not enough to shift the BCCh’s stance, is does seem to open up the possibility that a shift in the monetary policy stance can take place if we continue to see further economic slippage”.
Key Quotes
“Yesterday’s data releases are likely to put into question the stabilization we had seen in the Chilean economy over recent months”.
“On the manufacturing front, consensus looked for a flat print (+0.2% y/y), and instead we got a relatively sharp contraction (‐2.8% y/y)”.
“On the retail sales side, while consensus looked for a +2.7% y/y expansion, we instead got a +‐0.4% y/y print”.
“While we think one data point is likely not enough to shift the BCCh’s stance, is does seem to open up the possibility that a shift in the monetary policy stance can take place if we continue to see further economic slippage”.