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CHILE: Long-End Camara Swap Rates Decline 10bp

CHILE
  • Camara swap rates have outperformed today, with long-end yields down by around 10bp, supported by the recent dovish BCCh shift and latest CPI data which showed ex-volatiles inflation remaining on the soft side.
  • JP Morgan notes that core CPI rose by just 0.1% m/m in August, equating to a 3.6%ar pace in the last 3-months when adjusted for seasonality. They see inflation ending the year at 4.5% y/y, aligning with the updated BCCh central scenario, and they continue to expect two more 25bp policy rate cuts this year.
  • Goldman Sachs says that core inflation showed heterogeneity, with a benign core goods print but a re-acceleration of the stickier core services inflation component. They see inflation ending the year at 4.7%, adding that they expect the next electricity tariff hike in October, with the cumulative June-October increase reaching close to 44%.

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