This morning it was announced that the CPI rose 0.6% monthly in February. Our Chief Economist, Nathan Pincheira, was asked about this by Diario Financiero: "The higher than expected CPI is surely putting a chill on the market regarding an acceleration in the pace of monetary policy rate (MPR) cuts".

"Although U.S. employment data came in above expectations and showed that the U.S. economy remains strong, the impact this would have on the normalization of the federal funds rate would not be enough to overshadow the local price data. Thus, expectations about the fall in the rate differential would be moderating", Nathan mentioned.