Economics
Chile Central Bank Lifts Its Economic Estimates on Stimulus
- GDP to contract 4.5%-5.5% this year; was -5.5% to -7.5% before
- Policy makers held interest rate at record low on Tuesday
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Chile’s central bank reduced its forecast for an economic contraction this year as early pension withdrawals, record-low interest rates and government handouts boost consumer spending.
Gross domestic product will shrink 4.5% to 5.5%, versus the previous forecast for a drop of 5.5% to 7.5%, according to the quarterly monetary policy report published Wednesday. Policy makers lifted their year-end inflation call to 2.4% while also forecasting shallower drops in investment and domestic demand.