SANTIAGO (Reuters) – Chilean economic growth will sink 15.5% in May and 13% in the second quarter as the world’s largest copper producer continues to struggle with the effects of an economic shutdown to halt the spread of the new coronavirus, analysts said in a central bank poll published on Tuesday.
The central bank is not likely to adjust its 0.5% interest rate for the next five months at least, with inflation sinking from 2.5% at present – within the bank’s 2% to 4% range – to zero next month, but recovering to 2.5% in 11 months, the analysts said.
The exchange rate was seen at 780 pesos per dollar in two months and 760 pesos to the dollar in 11 months.
Chile is among the worst-hit by the new coronavirus in South America so far, with a total of 138,846 cases and 2,264 deaths confirmed as of Monday.
(Reporting by Aislinn Laing; Editing by Andrew Heavens and Bernadette Baum)
