The Mexican government’s underwhelming business plan for troubled state-owned oil company, Pemex, reinforces our view that it is not willing to implement the reforms necessary to stabilise oil production. Against that backdrop, we think that yields on Pemex debt have further to rise. Elsewhere, the dovish statement accompanying the Chilean central bank’s decision to leave interest rates unchanged at 2.50% yesterday has prompted us to pencil in a 25bp cut at the next meeting in September.
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 gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services