Chile rate hikes on the horizon, Brazilian payrolls

Chile’s central bank was notably less dovish at its meeting this week, supporting our view that the central bank will begin a tightening cycle later this year, most likely in Q4. Elsewhere, while Brazil’s latest political drama has dominated the headlines, one thing that may have flown under the radar was the positive news on payrolls. Given the latest signs of weakness in the economy, though, the strength of the labour market may not last.