Banxico set for further easing, early signs of fiscal hit

Banxico’s latest Quarterly Report and the minutes to its mid-May meeting suggests that more monetary easing is on the cards. Otherwise, the April fiscal data for Brazil and Argentina show early signs that the current crisis could cause budget deficits to blow out into the double digits as a share of GDP. Finally, a rare piece of good news in the region is that Argentine policymakers and bondholders may be edging closer to an orderly restructuring deal.