Chilean Traders Bet on First Interest Rate Cut in Two Years
This article is for subscribers only.
Traders in Chile’s interest-rate swap market are estimating that a global downturn may warrant the first interest rate cut in more than two years, a fortnight after economists forecast an increase.
Six-month interest rate swaps fell to 5 percent on Aug. 18, indicating at least one rate reduction from today’s 5.25 percent level this year. Economists surveyed on Aug. 9 by the central bank forecast a quarter-point increase.