Another rate cut in Brazil looks likely

Dovish comments from Brazil’s central bank governor and the continuing shift in market expectations have prompted us to pencil in a 25bp interest rate cut next Wednesday. Chilean policymakers held their key rate this week, but we expect that they will cut it from 1.75% to 1.25% by the end of the year. Elsewhere, Q4 figures released this week strengthened our view that Mexico’s economic recovery will be weaker than most expect in 2020.