11 Aug 2015
CLP outlook remains neutral – BAML
FXStreet (Edinburgh) - In the opinion of analysts at BAML, the outlook for the Chilean peso remains neutral.
Key Quotes
“Chile is experiencing a small-scale stagflation. The economy remains stalled, but inflation has been above the target band for 13 of the past 14 month”.
“The green shoots observed in 4Q 2014 and January 2015, driven by stronger exports and fiscal spending, have withered, as the economy either has contracted or remained flat since February”.
“We now expect GDP to expand only 1.8% this year, compared to our previous expectation of 2.6%. Our forecast still embeds a good degree of optimism”.
“We stay neutral the Chilean peso. On the positive side, the exchange rate has adjusted to lower terms of trade and the trade balance is well into surplus. On the negative side, the economic recovery has lost momentum and copper prices are falling sharply. Uncertainty around the constitutional reform is also hampering business investment”.
Key Quotes
“Chile is experiencing a small-scale stagflation. The economy remains stalled, but inflation has been above the target band for 13 of the past 14 month”.
“The green shoots observed in 4Q 2014 and January 2015, driven by stronger exports and fiscal spending, have withered, as the economy either has contracted or remained flat since February”.
“We now expect GDP to expand only 1.8% this year, compared to our previous expectation of 2.6%. Our forecast still embeds a good degree of optimism”.
“We stay neutral the Chilean peso. On the positive side, the exchange rate has adjusted to lower terms of trade and the trade balance is well into surplus. On the negative side, the economic recovery has lost momentum and copper prices are falling sharply. Uncertainty around the constitutional reform is also hampering business investment”.