Although Brazil was the first to raise interest rates, Chile could be the first in Latin America to lower them

Although Chile only started raising rates in July, four months after Brazil, it may be able to reverse policy sooner because of its much lower country risk. The Andean nation is rated "A" by all three major rating agencies, meaning it can attract investors by paying significantly lower interest rates than Brazil.

RIO DE JANEIRO, BRAZIL - Chilean swaps expect a rate cut in December, and the latest survey of financial players published by the central bank confirms this assessment. Borrowing costs are expected to peak between 9.25% and 9.5% in the next three months and then fall by 25 basis points within six months.

In Brazil, swaps point to the start of an easing cycle in the first quarter of next year.

South American central banks were among the first in the world to tighten monetary policy last year and are likely to be among the first to cut rates . . .

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