Skip to main content

Brazil’s election giveaways, panic stations in Chile

The rapid rise in inflation and sharp falls in the peso have clearly spooked Chile’s central bank and we now expect the policy rate to reach 11.0%, from 9.75% now, which puts us on the hawkish side of the debate. Elsewhere, the passage of a bill expanding social spending in Brazil ahead of the election deals another blow to the country’s fiscal rules, and it’s hard to see things improving in the next presidential term. Finally, tweaks to Argentina’s monetary policy setup point to growing fiscal dominance.

Become a member to read more

This is premium content that requires an active Capital Economics subscription to view.

Already a member?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access