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JPMorgan Stands With Deutsche Bank on Chile Rate Bluff


Most traders and economists who cover Chile’s central bank are convinced it’s brought the world’s most aggressive interest-rate cuts to an end. Deutsche Bank AG and JPMorgan Chase & Co. disagree.

Gustavo Canonero and Vladimir Werning, the firms’ respective economists, are the only forecasters among the 11 tracked by Bloomberg predicting more reductions in borrowing costs over the next year. Their view also contrasts with traders in the swap market, who are pricing in a more than 90 percent chance policy makers will keep rates unchanged in that span.