Central Banks
Hopes of World-Beating Rate Cuts Are Luring Investors to Cheap Chilean Stocks
- Chile’s benchmark is one of best performers in recent weeks
- Chile rates seen coming down more than any other this quarter
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The prospect of the most aggressive interest-rate cuts in the world has helped send Chilean stocks to record highs in a sign of what may be in store for other markets as their central banks turn dovish.
Chile’s equity index is the second-best performer among global benchmarks tracked by Bloomberg in the eight trading days since a surprise drop in consumer prices. That’s taken the Ipsa’s advance in the past three months to 13%, beating indexes in Mexico and Brazil, with analysts forecasting further gains based on still low valuations.