Growth concerns will increasingly dominate Latin American policymakers’ agendas as we move into 2012. With many of the world’s advanced economies headed towards recession, and China’s economy beginning to cool, external demand for the region’s commodity exports has started to weaken. Policy easing is likely to commence in Q1, although in some countries – notably Peru and Colombia – this could be delayed until Q2. For now, we don’t expect rate cuts to be as deep as those witnessed in 2008/09, however there is certainly scope to cut rates more aggressively if needed.