Chilean president-elect Kast's cabinet suggest that the new administration's key priorities will be to strengthen Chile’s public finances and deregulate the economy. We doubt that this will lead to pick-up in growth to 4% as government envisages; it’s more likely to come in closer to 2% in the coming years. Elsewhere, given the persistent strength in Brazil's labour market, we now expect Copom to remain on the sidelines next week, delaying the start of its easing cycle to the March meeting. Finally, the recently-announced bumper minimum wage hike in Colombia means that BanRep is likely to hike its policy rate next Friday.
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