Chile & Mexico Consumer Prices (Jun.)

The larger-than-expected decline in inflation in Chile to an 18-month low of 7.6% in June seals the deal on an interest cut at the central bank’s next meeting later this month. If anything, policymakers may deliver a bigger interest rate cut than the 50bp we’re currently expecting. Meanwhile, inflation in Mexico eased too last month, but we remain of the view that interest rate cuts there are only likely to come onto the cards around the turn of the year.