Economics
Latin America Central Banks Poised to Join Global Rate Cut Party
- Brazil seen cutting next week, Mexico in the next few months
- Chile and Paraguay already eased monetary policy, may cut more
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With inflation subdued in Latin America and its top economies flirting with recession, central banks are gearing up to join emerging market peers from Asia to Africa in cutting interest rates.
Brazil is expected to reduce borrowing costs next week for the first time in over a year, after yet another inflation reading surprised economists to the downside. A slowdown in Mexico’s annual consumer price index on Wednesday reinforced the outlook for monetary easing, whether sooner or later, and Peru said it’s considering the same.