MNI Latam Week Ahead - Peru Rate Decision, Brazil CPI Data

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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 Peru, the BCRP is expected to leave its benchmark reference rate unchanged at 4.25% on Thursday as it maintains a wait-and-see approach amid the heightened geopolitical uncertainty. However, risks are skewed towards the possibility of a hike following recent stronger-than-expected inflation data.
• Meanwhile, Brazil CPI inflation is expected to rise further in April amid ongoing fuel price pressures, although this is unlikely to derail the BCB’s cautious easing cycle at this time.
• Elsewhere, Argentina CPI inflation is also likely to remain sticky amid rising fuel costs, while in Colombia GDP growth looks set to moderate in Q1 amid weakness in the industrial sector. Nonetheless, robust consumer spending will keep BanRep on guard for any further increase in inflation pressures.