Latin America's Rate-Cutting Wave Boosted by Tepid Price Data
- Fresh inflation prints in Brazil, Mexico, Chile back easing
- Policy makers grappling with slower growth and inflation
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The stage is set for fresh central bank interest rate cuts across Latin America following a deluge of benign consumer price data released on Thursday.
Annual inflation in Mexico slid to the lowest level since the end of 2016, while year-on-year prints in Brazil and Chile came in close to a full percentage point below their respective price targets. Investors see odds of a quarter-point borrowing cost cut in Mexico as soon as its policy decision next week. They are also pricing in as much as a half-point reduction in both Chile and Brazil in September after previous cuts in both countries.