The downward revision to our oil price forecast is likely to exacerbate public finance risks in some of the region's major oil producers, notably Colombia and Ecuador. But other countries, especially Chile, will benefit as lower energy prices support the disinflation process. Elsewhere, comments this week from Banxico's Deputy Governor Jonathan Heath once again highlighted policymakers' concerns about the weakness of Mexico’s economy. This is a key reason why we expect Banxico to look through the rise in inflation in April and press ahead with another 50bp cut, to 8.50%, at its meeting next Thursday.
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:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services