The rise in Brazilian inflation, to 4.6% y/y, in the middle of this month shifts the balance a bit further an interest rate hike at the next Copom meeting in March, but there are reasons to think that policymakers are still more likely to keep rates unchanged. Elsewhere, the further rise in Mexican inflation is likely to cause jitters at the central bank, and we doubt that Banxico’s easing cycle has further to run from here.
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