Chile Rate Swaps May Rise as Central Bank Delays Cuts, RBS Says

RBS Securities Inc. is recommending investors pay Chilean swap rates as a bet the central bank won’t lower its benchmark interest rate in December.

The two-year swap rate may rise toward 4.5 percent and eventually reach 4.72 percent, Siobhan Morden, a Latin America strategist at RBS, wrote in a note to clients. The rate climbed six basis points to 4.26 percent today, according to data compiled by Bloomberg.

To contact the reporter on this story: Sebastian Boyd in Santiago at sboyd9@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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