Latin America Economics Update Peruvian economy carrying plenty of momentum in 2011 Peru released monthly GDP data for December this afternoon which suggest that output increased by 9% last year. With the economy carrying plenty of momentum we are revising up our forecast and now... 15th February 2011 · 1 min read
Latin America Economics Update Peruvian rates edge higher, other measures to be deployed The Central Reserve Bank of Peru (BCRP) hiked interest rates by 25bps to 3.5% last night. With the economy booming and inflation pressures building, further rate hikes will probably follow over the... 11th February 2011 · 1 min read
Latin America Economics Update Peruvian rates heading to 4.5% Last night, the Central Reserve Bank of Peru (BCRP) unexpectedly hiked interest rates by 25bps to 3.25%. With the economy set to grow by 6% this year and the outlook for inflation deteriorating, we... 7th January 2011 · 1 min read
Latin America Chart Pack Growth to stay strong in 2011 but imbalances will widen The outlook for Latin America in 2011 is, on the whole, pretty good. We expect almost all countries in the region to grow at around their potential rates next year. But while there are few concerns... 21st December 2010 · 1 min read
Latin America Economics Update Could the next move in Brazilian rates be down? The incoming administration in Brazil has a historic opportunity to re-balance the policy mix in favour of tighter fiscal policy and looser monetary policy (and a weaker currency). What’s more, there... 16th December 2010 · 1 min read
Latin America Economic Outlook Outlook good but testing times lie ahead The outlook for Latin America remains good and, while the developed world will struggle to grow by 2% next year, we expect the region as a whole to grow by 4%. Brazil, Chile, Peru and Colombia will... 14th December 2010 · 1 min read
Latin America Economics Update Peruvian rates on hold as currency concerns persist Last night, the Central Reserve Bank of Peru (BCRP) held interest rates at 3.0% for the third consecutive month. Even though the outlook for inflation is deteriorating, currency concerns are likely to... 10th December 2010 · 1 min read
Latin America Economics Update Currency concerns to temper rate hikes Strong capital inflows continue to create something of a headache for policymakers in Latin America. On the one hand, growth should remain strong over the coming quarters, while the inflation outlook... 29th November 2010 · 1 min read
Latin America Economics Update Outlook for Peru still good, but policy challenges mounting Peruvian GDP growth slowed in Q3, but the outlook remains good. The key challenge for policymakers will be to channel an influx of foreign capital into productive capacity and prevent overheating. By... 26th November 2010 · 1 min read
Latin America Economics Update Peru: Early warning signs of higher inflation in 2011 The outlook for inflation in Peru is deteriorating but the policy response is not straightforward. Interest rate hikes would only serve to increase speculative inflows of ‘hot money’, while fiscal... 4th November 2010 · 1 min read
Latin America Chart Pack Not in a bubble... yet The prospect of further policy easing in the developed world is stoking fears about asset price bubbles in Latin America. High commodity prices, good growth prospects and comparatively high returns... 28th October 2010 · 1 min read
Latin America Economics Update Learning to live with higher capital inflows Policymakers across the region are facing a tricky balancing act. On the one hand, capital inflows are likely to remain healthy over the coming months. Additional liquidity generated by further policy... 18th October 2010 · 1 min read
Latin America Economics Update Peru: BCRP pause, underlines gradual pace of rate hikes The Central Bank of Peru’s (BCRP’s) surprise decision to hold interest rates at 3.0% last night adds weight to our view that rate hikes will be gradual. We continue to expect rates to end next year at... 8th October 2010 · 1 min read
Latin America Chart Pack Capital controls back on the agenda Governments in Latin America are becoming increasingly concerned about rapid currency appreciation, and for good reason. For a start, most currencies (with the notable exception of the Mexican peso)... 30th September 2010 · 1 min read
Latin America Economics Update Treading carefully After a rapid rebound from last year’s recession, it seems that growth in Latin America is now starting to ease to a more sustainable pace. Monetary tightening has further to run in Chile and Peru... 20th September 2010 · 1 min read
Latin America Economics Update Peruvian interest rates rise for fifth consecutive month Last night, the Central Reserve Bank of Peru (BCRP) hiked interest rates by 50bps to 3.0%, as expected. With the economy still growing at a red-hot pace, we expect rates to rise to 4.0% by year-end... 10th September 2010 · 1 min read
