SANTIAGO -- Chilean inflation and growth projections worsened, according to the latest Chile Central Bank survey of economic expectations.
On the inflation front, the median projection for year-end 2015 rose to 4.7% from 4.3% in the previous survey.
For year-end 2016, median expectations rose to 3.5% from 3.1% previously.
Meanwhile, the median estimate for annual real GDP growth remained stable at 2.2% for 2015 but fell to 2.7% from 2.8% for 2016 and to 3.2% from 3.5% for 2017.
As for the monetary policy rate, median market expectations now call for a 25bp increase to 3.25% in the next five months, an additional 25bp increase to 3.50% in the next 11 months and a 50bp hike to 4.0% in the next
In the previous survey, the median projection was that the central bank would remain on hold in the next five months and increase the monetary policy rate by 25bp in the next 11, 17 and 23 months (to 3.25%, 3.50% and 3.75%, respectively).