The US Fed's tightening cycle is unlikely to be a major concern for much of Latin America, although Chile's large current account deficit may become a growing vulnerability. The Fed’s move may also prompt a more hawkish shift by Mexico’s central bank, particularly given the backdrop of growing inflation risks. As a result, we expect a non-consensus 75bp interest rate hike by Banxico next week.
Long Run Outlook Drop-In (23 March, 11:00 EDT/15:00 GMT): What will be the lasting impacts of the war in Ukraine? What legacies will the pandemic leave? What does a future of higher inflation mean for economies and markets? Neil Shearing hosts this special discussion with senior economists about the long-term investing outlook on Wednesday. Register here.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
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