The recent turmoil in the financial markets has re-shaped the debate on how far interest rates may need to rise in Latin America. We still expect one or two more hikes in Peru, Colombia and perhaps even Chile, but rates have probably now peaked in Brazil. Meanwhile, in Mexico the deteriorating outlook for the US economy supports our long-held view that interest rates will remain at their current record low of 4.5% for longer than the market (and consensus) expects. Indeed, we now think that BANXICO will keep rates on hold until 2013.
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