The political fight over a fresh round of pension withdrawals in Chile underlines the Boric administration's struggle to wean the economy off accommodative policies. This will heap more pressure on the central bank to tighten policy aggressively to alleviate inflation and balance of payments risks. Otherwise, strong inflation data out of Argentina this week suggest that the government will fail to meet the IMF's target to reduce inflation this year. There's a risk this will be a prelude to broader slippage on the terms of its new deal with the Fund.
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