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“After three years of strong growth of around 6% per year, the Chilean economy has showed signs of deceleration in the activity during the first semester of this year posting a GDP of about 4% year-on-year.”
“This decrease in economic activity as in mainly due to our contraction that is referenced boosted among other practice by a drop in corporate confidence due to lower commodity prices, higher operational costs and more cautious outlook regarding the social and political scenario.”
“Private consumption has also decelerated but more gradually in line with persistent positive fundamentals for the Chilean pesos.”
“at the end of the quarter CPI we gained an upward trend posted a 12-month increase of 1.9%”
“As for the monetary policy, the Central Bank has kept the policy rate at 5% since January 2012 due to a solid performance in the economy and that anchored inflation in the expectation. However, we mentioned to you that the current deceleration in the activity has increased the probability for a downward adjustments in the policy rate. In the coming months an option that was confirmed by the Central Bank in its last monetary policy meeting where they pointed out the further deterioration in the GDP growth will require more expansionary monetary policy.”
” We are seeing a very similar trends [on credit quality] in the last year or really with that trend that we have found in the last quarter in order to reach a number by the end of the year 1.1%, 1.16% instead of a loan loss provision vis-à-vis the total loss.”[analyst comment] “So in other words, you think under a normalized inflation environment your ROE could be 25%, 26%”