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SANTIAGO: Chile's benchmark interest rate is expected to be cut to 2.0pc as early as September, according to a monthly poll of 60 traders released on Tuesday.

The central bank said in July that it would keep the benchmark interest rate steady at 2.5pc, in line with market expectations.

Chile's central bank had unexpectedly cut interest rates by 50 basis points in June as the world's top copper producer grappled with an increasingly sluggish economy that has suffered amid global trade tensions.

Consumer prices were expected to increase by 0.2pc in August, according to the central bank poll.

According to the poll, Chile's consumer prices will rise 2.7pc in 12 months.

Copyright Reuters, 2019

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