Central Bank of Chile likely to stand pat on sluggish October activity

Chile central bank CBC's overnight rate is currently at 3.25%. The central bank is expected to rise its over night rate slightly by 25 bp by the market consensus, while some market participants expect it to be on hold in its December meeting.

The country's activity in October was lower than expected, which has raised fears about the economy's health and if the economy is bottoming out.

"With an expected Fed rate hike around the corner, in our view, the BCCh will adopt a wait-and-watch stance at this meeting rather than rushing into tightening given the fragile state of economy", says Societe Generale in a research note.