FXStreet (Edinburgh) - In the view of BofA Merrill Lynch Global Research, the stance for the Chilean currency remains neutral. Key Quotes “We stay neutral the Chilean peso. The exchange rate has adjusted to the negative terms-of-trade shock leading to a swift recovery of the current account balance”. “Based on economic fundamentals, we estimate the exchange rate is now slightly undervalued. However, risks are clearly biased to the downside − our commodities strategists forecast lower copper prices for 2016”. “We expect growth to remain mediocre this year and next. The reasons are not particularly mysterious: growth for Chile’s main trading partners has weakened in the last two years and the country’s terms-of-trade is down nearly 20% since 2011”. “Persistently high inflation has led the central bank to start tightening monetary policy and we expect another 75bp of rate hikes in the next 12 months”. For more information, read our latest forex news.