While Argentina’s new finance minister has made some encouraging noises about sticking to the current IMF deal, there’s still no acknowledgement that the real exchange rate needs to weaken to restore macro stability. Elsewhere, the minutes to Banxico’s June meeting confirm that a 75bp hike in August is a done deal. Finally, long-awaited data from Brazil’s central bank suggest that the economy made a surprisingly soft start to Q2. But there’s not enough to make us change our above-consensus growth forecast for this year of 2.0%.
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