SANTIAGO – Experts have lowered to 1.9 percent their forecast of economic growth this year in Chile, far short of the 4 percent increase estimated earlier, the Central Bank said on Friday.
The bank’s Monthly Expectations Survey – which polled move than 60 economists and financial executives – also found that expectations for 2015 growth have also diminished, from 3.3 percent to 3.1 percent.
Economic activity increased 1.5 percent in September after edging up 0.3 percent in August.
Chile’s GDP increased 4.1 percent in 2013.
Inflation over the last 12 months stands at 4.9 percent, outside the Central Bank’s target range of between 2 percent and 4 percent.
Chile’s Central Bank has estimated that annual inflation will remain between 3.5 percent and 4 percent over the coming months, while the experts surveyed call for a rate of 4.6 percent in the fourth quarter of 2014 and 3 percent next year.
In this environment, the experts believe the Central Bank will lower the benchmark interest rate this month by 25 basis points to 3 percent, but they don’t expect another reduction next month.