Chile’s two-year swap rate may fall to 4.25 percent, strategists at Standard Chartered Plc in New York wrote today in a note to clients.
The two-year rate may drop as the central bank cuts its target lending rate to 3.5 percent, according to Bret Rosen and Italo Lombardi. The swap rate increased four basis points, or 0.04 percentage point, to 4.60 percent today. It slid 14 basis points last week.
Chilean policy makers discussed raising the benchmark interest rate at last month’s meeting before voting unanimously to keep it at 5 percent, according to minutes of the meeting.