Chile slows, Colombia rates, Milei’s second reform stage

The softer-than-expected activity data out of Chile this week add to the evidence that the economy lost momentum in Q2, which poses a downside risk to our growth forecast this year. Elsewhere, Colombia's central bank has been a laggard in the regional easing cycle, but with inflation set to fall further in the coming months, it will be the one country in Latin America where substantial further rate cuts are likely this year. Finally, Argentina’s government appears to be moving to the next phase of reforms at the central bank (with details likely to be confirmed next week). But the fact that the crawling peg is set to remain in place for a while yet is becoming increasingly concerning.