GBP/CLP Outlook: Slightly weaker, but likely to move sideways as the rate is below its recent average and lacks clear drivers.
Key drivers:
• The Bank of England is expected to keep interest rates steady, which may limit upward pressure on the GBP.
• Chile's monetary policy remains stable, with the Central Bank keeping interest rates unchanged while inflation trends favorably.
• Positive growth forecasts for the Chilean economy, supported by increased investment and favorable copper prices, reinforce the strength of the CLP.
Range: The GBP/CLP is likely to drift within its 3-month range, maintaining stability without significant fluctuations.
What could change it:
• Upside risk: Stronger-than-expected UK manufacturing growth could improve GBP demand.
• Downside risk: An unexpected rate cut from the Bank of England could further weaken the GBP.