MNI Latam Week Ahead - Banxico Rate Decision, BanRep Minutes
May-01 15:43By: Keith Gyles
Our Latam Week Ahead document highlights the major data releases and events scheduled across Latam next week. The document also includes the most pertinent macro developments over the past week.
- Banxico’s monetary policy meeting takes the focus in Latam next week, where the central bank is expected to deliver a potentially final 25bp interest rate cut to 6.50% on Thursday, amid a moderation in core inflation and weak activity data.
- Elsewhere, the minutes to the recent monetary policy meetings in Chile, Brazil and Colombia will also be released, with particular interest on BanRep after the unexpected decision to remain on hold. The policy statement there indicated that although the members of the Board hold diverse views on monetary policy, they reached a consensus to leave the benchmark rate unchanged in an effort to reach agreement after recent hikes.
- On the data front, a moderation of core inflation in Mexico in April should support the case for a Banxico rate cut, while Chile CPI inflation is set to rise sharply in April on the back of higher fuel prices.
