SANTIAGO, Sept 4 (Reuters) - Chile’s central bank cut its forecast range for 2013 gross domestic product growth, but maintained inflation and domestic demand predictions, as the effects of the slowdown hitting the top copper exporter are moderated by buoyant consumer spending.
The bank anticipates the economy of Chile will expand between 4 and 4.5 percent this year, compared to a prior projection of between 4 and 5 percent, according to the bank’s quarterly Monetary Policy Report (IPoM) published Wednesday.
Inflation in 2013 is seen at 2.6 percent, the same as its previous forecast, while the bank predicts inflation will rise to 2.8 percent in 2014. The bank’s annual inflation target range is 2 to 4 percent.
“The base scenario reflects the slowdown of activity in the year to date. Furthermore it considers that investment will continue to moderate,” said the report.
“The slowdown in consumer demand will occur gradually, taking into account the continued strength of the labor market.”