Regional rightward shift, Copom’s final rate cut?

Keiko Fujimori's initial steps as Peru’s president point towards improved relations with the US and tighter fiscal policy, but whether she can achieve the latter will depend on her ability to build alliances in Congress. Colombia's president-elect Abelardo de la Espriella will face a similar problem when he is sworn in as president next Friday. Next week, Banxico is all but certain to leave its policy rate unchanged at 6.50%, while the relatively soft mid-month inflation figures for July in Brazil make us more confident that Copom will deliver another 25bp interest rate cut, to 14.00%

We’ll be discussing our latest EM Financial Risk Indicators in an online briefing at 10:00 ET / 15:00 BST on Wednesday 5th August. Register here.