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EXECUTIVE SUMMARY
- Argentina
- Government negotiates a new version of the omnibus bill with centrist parties and non-kirchnerist Peronists
- Inflation reduced but it is still very high
- No conditions yet to lift the FX controls
- Chile
- Inflation scenario and not heated activity allow the Central Bank to continue cutting the policy rate
- CLP might depreciate this year and appreciate next year
- Colombia
- President Petro is facing hurdles to approve his initiatives in the Congress
- BanRep speed up the easing cycle as of the improved inflation scenario
- But activity is still suffering as monetary policy is still very restrictive
- Mexico
- General election is approaching and president Obrador might make his successor
- Activity is positive, inflation gradually retracting
- Total magnitude of policy rate cut dependent on inflation and FOMC
- Peru
- President Boluarte in the middle of a new scandal, but she was able to survive from impeachment motions
- BCRP surprisingly cut the policy rate by 25bps to 6.00%
