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 firstname.lastname@example.org
To contact the editor responsible for this story: David Papadopoulos at email@example.com