The confirmation that Luis Caputo will be Argentina’s next economy minister reinforces our view that, while President-elect Javier Milei is likely to put the economy through shock therapy, it will be stripped of some of its more radical elements, especially dollarisation. Elsewhere, this week's data suggest that labour markets in many parts of the region are cooling, which should allow Colombia’s central bank to start an easing cycle and Brazil’s and Chile’s to continue cutting rates. Mexico is the key outlier – its labour market continues to tighten. But policymakers’ comments this week suggest there is a growing consensus that there will be scope for rate cuts in early 2024.
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