MNI Latam Week Ahead - BCCh, BCB, BanRep Rate Decisions

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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.

• In Chile, the BCCh is likely to remain on hold at 4.50% on Tuesday as it remains in a data dependent mode and takes its time to assess the impact of the Iran war on the economy.
• Meanwhile, the BCB is expected to continue with its cautious easing cycle and deliver a second consecutive 25bp Selic rate cut to 14.50% on Wednesday, despite the recent increase in inflation expectations, as monetary policy remains well inside restrictive territory.
• In contrast, BanRep looks set to deliver a further 50bp rate hike to 11.75% in another split decision on Thursday, as a majority of the Board remains concerned about rising inflation pressures following the aggressive minimum wage increase.
• On the data front, the Mexican economy is expected to have contracted over the first quarter of the year, keeping the door open to a possible Banxico rate cut next month.