Chile's cbank cuts 2016 growth forecast to 1.25pc
Chile´s long-heralded economic recovery is on hold once again, at least for the rest of this year, the central bank said, cutting its growth and inflation forecasts for 2016. The world's largest copper producer will expand 1.25 percent to 2.25 percent this year, policy makers said in their quarterly monetary policy report Monday. The previous estimate was 2 percent to 3 percent. Consumer prices will rise 3.6 percent, compared with the prior estimate of 3.8 percent. "The economy will grow beneath its potential for a good part of the forecast period," policy makers said. "Activity and demand have lost strength, the labor market has weakened and consumer and corporate sentiment remain pessimistic." Increased government spending and loose monetary policy have failed to revive growth in an economy reeling from a slump in copper prices, prompting policy makers to reduce their growth estimates for eight consecutive quarters.