The hawkish tone of the Banxico minutes released this week adds weight to our view that the easing cycle in Mexico will be very gradual and we think it's most likely that rates will be kept on hold at the next meeting in May. Meanwhile, Fitch’s downgrade of Panama’s sovereign foreign currency credit rating to junk status reaffirms the concerns we’ve raised about the country’s fiscal position. Finally, while Peru’s latest political scandal has had little impact on local financial markets, the big risk is that it triggers social unrest which could stop inflation and interest rates from falling.
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