Fynsa
An analysis by the Boston Consulting Group explores how technology, geopolitics, and climate change could reshape the world in the coming decades.
We believe Chile continues to offer a good entry point toward 2026, with historically attractive real rates, equity valuations below their long-term averages and a discount relative to emerging markets, as well as catalysts that could favor a gradual re-rating of local assets.
It seems that after years of constitutional uncertainty and failed reforms, the market perceives greater institutional clarity, coupled with converging downward rates. If these conditions consolidate, the dollar could move toward more "normal" ranges, even closer to $800 in the medium term.
Custom dictated that, in September, a monthly increase in the CPI of 0.5% or 0.7% was normal, usually motivated by increases in the products most consumed by Chilean families during the holidays. However, for some time now we have seen a change in this behavior.
It does not appear that the risks are being executed yet, or at least that is what the current basket data is showing (at least under our analysis).
We reaffirmed our constructive view for local assets, both in fixed income and equities.
The Central Bank adjusts its economic projections, but maintains a cautious approach to global risks that could alter its monetary policy strategy in the coming months.
What explains this nice world in terms of prices that we are living in?
Higher interest rates put pressure on valuations during 2022, but the focus will now shift from valuations to corporate earnings in an increasingly challenging macro environment.
The Central Bank will take into account factors other than inflation in setting its monetary policy, such as the current account deficit, financial conditions, and international trade.
