As Chile's Growth Potential Ebbs, Traders See Faster Rate Hikes

Updated on
  • Yields surged after the central bank's monetary-policy report
  • Lower potential growth estimate implies narrower output gap

Chilean policy makers are ratcheting down their estimates for how fast the economy can grow without stoking inflation, spurring bets that the Andean country will raise benchmark interest rates as early as this year.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.