January 27, 2023 15:38 GMT
Camara Swap Rates Surge Following BCCh Decision & Costa Remarks
- Chilean swap rates are extending their advance higher on Friday after central bank President Rosanna Costa told Bloomberg that policymakers wouldn’t start cutting borrowing costs until a slowdown in inflation was consolidated.
- The comments come a day after the central bank decision and statement where the unchanged guidance was seen as a moderately hawkish signal. President Costa’s remarks appear to embolden this viewpoint:
- Inflation remains “extraordinarily high” and the bank needs more time to ensure it’s slowing toward the target before it can ease monetary policy, Costa said in a Bloomberg Television interview.
- Chile Camara Swaps:
- 1-yr +17 bps at 9.42%
- 2-yr +16 bps at 7.20%
- 5-yr +15 bps at 5.58%
- 10-yr +13 bps at 5.29%
- 30-yr +12 bps at 5.35%