India could represent a massive market for LatAm commodities. But can it act as a real driver for the region’s growth and lessen South America’s reliance on China?
Category: Economy & Policy
Posted inMagazine
Room for Mistakes
Peruvian political risk is back in the headlines. But so far investors are taking such events in their stride as President Humala pursues market friendly policies.
Posted inDaily Brief
Brazil Expected to Cut Rates
Analysts are calling for a cut of 50bp when Brazil’s central bank meets today to set the benchmark interest rate, now at 11.0%. Itau, among those calling for such a reduction, says it expects the cuts to continue, and see the Selic rate dropping to 9.0% by May.
Posted inDaily Brief
Chile Lowers Rates, Peru Holds
Chile’s central bank has decided to lower the country’s benchmark interest rate by 25bp to 5.00%, despite expectations it would hold. In its statement accompanying the decision, it cites continued slow growth in developed markets and slowing in key emerging markets. Meanwhile, Peru held its rate at 4.25%, as expected, with its central bank mentioning slow global growth and an increase in inflation as the main factors influencing its decision.
Posted inDaily Brief
Colombia Holds Rates
As expected, Colombia’s central bank has elected to maintain the country’s benchmark interest rate at 4.75%. In its communique, the bank cites continuing international volatility, an acceleration in domestic credit growth and inflation that should finish the year at 4%. The bias is still for keeping the rate unchanged for longer or a possible hike in the future if necessary, Nomura says.
Posted inDaily Brief
Colombia Set for Rates Decision
Colombia’s central bank is scheduled to decide today whether to alter the 4.75% benchmark interest rate. An eventual raise in the rate is expected, but many analysts predict a hike next year rather than what would be a second consecutive increase today, in its final meeting of the year.
Posted inDaily Brief
Chile Holds Rates
As expected, Chile’s central bank decided to hold the county’s benchmark interest rate at 5.25%. The banks cited continuing deterioration in the global economic outlook, as well as domestic economic activity developing at a rate slightly below expectations. Analysts expect the bank to begin cutting rates as soon as January.
Posted inDaily Brief
Chile Seen Holding Rates
Shops, including Nomura, see higher-than-expected inflation in Chile and as a result expect the central bank to hold the country’s benchmark at 5.25%. The bank is scheduled to make its decision this afternoon, the first under new governor Rodrigo Vergara.
Posted inDaily Brief
Peru Holds Rates
Peru’s central bank has decided to keep the country’s benchmark interest rate at 4.25%, in line with expectations. The decision takes into account factors including lower growth in spending, international financial risks, and an increase in inflation, the bank says.
Posted inDaily Brief
Peru Seen Holding Rates
Peru’s central bank is expected to hold its benchmark rate at 4.25% at the policy meeting today. Though 12-month inflation numbers are above-target, concerns about stalling global growth appear to outweigh fears of domestic overheating. “The central bank seems committed to keep interest rates unchanged despite higher headline inflation,” says RBS, which is among the shops forecasting a continued pause.