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Politics

Trump Will Heighten Trade Tensions, Chile Central Bank Head Says

Rosanna Costa, president and governor of Central Bank of Chile, during a Bloomberg Television interview in Santiago, Chile, on Thursday, Jan. 26, 2023. Costa is pushing back against bets that policymakers will start a series of steep interest rate cuts in April. (Tamara Merino/Bloomberg)

(Bloomberg) --

Chilean Central Bank Governor Rosanna Costa said she expects trade tensions to increase with Donald Trump’s return as US president, La Tercera reported, citing an interview.

“We know that trade tensions will increase, but we do not know how, when, if it will be focused on a group of countries or if it will be more generalized,” Costa told the newspaper.

Costa said that inflation last month was higher than the central bank had projected, and she expects transitory cost pressures in the economy with “somewhat weaker consumption.” The base case on inflation hasn’t changed even though data are more volatile, she said.

While Chile’s monthly economic activity contracted in September by the most since July 2022, the economy is expected to expand 2.4% in 2024, according to a Nov. 15-20 Bloomberg News survey of 21 economists. 

 

 

--With assistance from Matthew Malinowski.

©2024 Bloomberg L.P.