(Bloomberg) -- Chile economists expect the central bank to slow the pace of monetary easing for a second straight meeting as policymakers monitor inflationary pressures from a weaker currency.

Board members will lower borrowing costs by 50 basis points to 6% in May, according to a monthly central bank survey of economists published on Wednesday. Analysts see rates hitting 4.25% in 11 months.

Chile’s central bank struck a more cautious tone at April’s policy meeting, slowing the pace of key rate cuts while still signaling future reductions ahead. In a report published the following day, policymakers lifted their 2024 inflation and economic growth forecasts. Cost-of-living increases have been pressured by this year’s 8% drop in the currency, which has raised import prices.

Read more: Chile Slows Easing Pace and Signals Cautious Rate Cuts Ahead 

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