Experts cut growth expectations for 2009

SANTIAGO.- Experts polled by the Central Bank during its latest Economic Expectations Survey for March of 2009 have predicted growth of only 0.2%.

The figure indicates a significant drop when compared to the 1.2% forecasted by the previous poll.

The economic growth expectations for 2010 also decreased from 3.55% in the previous poll to 3.0% in the latest survey.  With regards to the Monthly Economic Activity Index (IMACEC) for February, those questioned predicted a figure of -1.1%.

Furthermore, estimates indicate that the GDP will be -1.0% for the first trimester of 2009.

With regards to the interest rate, those polled believe that it will fall to 2.5% over the next two months.

Meanwhile, the market expects the Central Bank to cut the interest rate to 3.31% during its meeting this Thursday.

Over the next 11 months, the interest rate should drop to 2.5%, while in December it is expected to be at 3.75%.

By December 2009, experts predict the 12-month inflation rate will reach 2.3%.

According to the information released by the Central Bank, those polled expect the peso-dollar exchange rate to be at $610 in two months.

Meanwhile, the 11-month forecast indicates that the dollar should be at about $630 pesos.