Chilean interest-rate swaps rose the most in four months after the central bank signaled monetary easing would occur only when the economy shows more signs of slowing.
The two-year swap, which reflects traders’ expectations for future interest rates, rose 12 basis points, or 0.12 percentage point, to 4.65 percent, the biggest increase since March 30. The one-year swap rate advanced nine basis points to 4.83 percent.
Policy makers were unanimous in a decision to keep their key rate unchanged this month, according to minutes published on the bank website today. They didn’t discuss changing borrowing costs for a second month after considering a quarter-point increase in May, the minutes showed.
“The central bank reaffirmed a very neutral stance,” Mauro Roca, a strategist at Deutsche Bank AG said in a phone interview today from New York. “The economy is very resilient and is growing slightly above expectations and there is no slack in the goods and labor market. The central bank wants to leave its options open to move in any direction.”
Retail and supermarket sales growth surged in June, expanding 8.9 percent and 12 percent from the previous year respectively, the National Statistics Institute said in a report today. Still, manufacturing decelerated in June, climbing 1.1 percent following a 2.8 percent expansion in May, the institute said. The median estimate of 14 economists surveyed by Bloomberg was for manufacturing to climb 3.2 percent in June.
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