Chile Economic Activity Slips, Boosting Case for Rate Cuts

Chile’s economic activity unexpectedly dropped in May on declines across several sectors, supporting the central bank’s outlook for renewed interest rate cuts over the coming quarters.

The Imacec index, a proxy for gross domestic product, fell 0.2% from April, versus the median estimate of analysts in a Bloomberg survey for 0.4% growth. Activity rose 3.2% from the prior year, the central bank reported on Tuesday.