Economics
Brazil Is the Best Place to Bet Against Hawkish Central Banks
- Too soon to receive rates across Latin America, banks warn
- Brazil may be the only exception as easing expectations mount
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Brazil might be the only place in Latin America where traders are right to defy a hawkish turn from policy makers, according to at least three leading banks.
While swap markets across the region are pricing in rate cuts next year, analysts from Goldman Sachs International, JPMorgan Chase & Co. and Citigroup Inc. say Brazil is the sole country where holding receivers -- positions that profit from falling rates -- may actually pay off.