Latin America Economics Update Colombian policymakers unlikely to follow the Fed The decision by Colombia’s central bank to leave interest rates unchanged at 4.50% last night was not a surprise – but what was more notable was that, given the economy’s large current account deficit... 25th June 2015 · 1 min read
Latin America Economics Update A closer look at Chile’s current account improvement Chile is the only country in Latin America that has managed to reduce its current account deficit since the “Taper Tantrum” of 2013, which makes the economy less exposed to tightening external... 16th June 2015 · 1 min read
Latin America Economics Update Policymakers in Chile and Peru likely to hold fire until 2016 Interest rates in Chile and Peru were left unchanged last night and with both economies in the early stages of recovery, policymakers are likely to delay rate hikes until next year, even if the Fed... 12th June 2015 · 1 min read
Latin America Economics Update Latin America & Fed tightening: risks revisited Several economies in Latin America have large current account deficits that could leave them vulnerable as and when the Fed starts to raise interest rates. The risks in Brazil are, by now, well known... 10th June 2015 · 1 min read
Latin America Economics Update What next for crisis-stricken Venezuela? With Venezuela’s economic crisis intensifying, attention is starting to focus on how the country might get out of this mess. Two options have been suggested in recent weeks – one is the establishment... 9th June 2015 · 1 min read
Latin America Economics Update Mexico elections: a glass half-full Elections in Mexico on Sunday delivered a broadly market-positive result, with the coalition led by the ruling PRI Party retaining its majority in Congress. But while this should ensure that Mexico... 8th June 2015 · 1 min read
Latin America Economics Update Brazil hikes rates; attention now turns to Inflation Report The decision by Brazil’s monetary policy committee (COPOM) to raise interest rates by another 50bp to 13.75% was expected, but the fact that the accompanying statement was left unchanged from the last... 4th June 2015 · 1 min read
Latin America Economics Update Markets in Brazil and Colombia suffer fresh falls Following a brief recovery last month, Brazilian and Colombian financial markets have sold off in recent weeks, with both equities and currencies coming under pressure. But elsewhere in Latin America... 27th May 2015 · 1 min read
Latin America Economics Update A closer look at Mexico’s mining downturn First quarter GDP data from Mexico, due to be released tomorrow, are likely to show that the economy made a sluggish start to the year, due in large part to continued weakness in the mining sector... 20th May 2015 · 1 min read
Latin America Economics Update Chile and Peru happy to play a waiting game The fact that the timetable for rate “lift-off” in the US seems to have been pushed back in recent weeks has relieved pressure on policymakers in both Chile and Peru to follow suit and tighten policy... 15th May 2015 · 1 min read
Latin America Economics Update Brazil heads deeper into the fiscal mire It is, in truth, too soon to expect any improvement in Brazil’s public finances as a result of the belt-tightening measures introduced over the past few months, but the fact that the fiscal position... 7th May 2015 · 1 min read
Latin America Economics Update Brazil hike rates; all eyes now on the real Calling turning points is always tricky but, assuming that the real remains stable over the coming months, we think that last night’s 50bp increase in Brazilian interest rates to 13.25% could be the... 30th April 2015 · 1 min read
Latin America Economics Update Lat Am currencies find their feet Following an extended period of weakness, it appears that Latin America’s currencies have finally started to find their feet. Most have been broadly flat against the dollar so far this month, while... 28th April 2015 · 1 min read
Latin America Economics Update A glimmer of hope for Brazil’s manufacturing sector Some of the structural constraints that have held back manufacturing in Brazil over the past decade now appear to have eased. So while we don’t expect an imminent turnaround in the sector, or an Asian... 27th April 2015 · 1 min read
Latin America Economics Update Colombia: limited room for interest rate cuts this year Interest rates in Colombia were left unchanged at 4.50% on Friday night and above target inflation and a large current account deficit limit the room for monetary easing to counter slowing economic... 27th April 2015 · 1 min read
Latin America Economics Update Argentina Activity Indicator (Apr.) Our Argentina Activity Indicator (AAI) suggests that conditions in the economy have stabilised following sharp falls in output last year, but the best we can say is that GDP is stagnating – there is... 23rd April 2015 · 1 min read
