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Monetary easing may quicken in Brazil this year

Location:

BRAZIL

At its first meeting of 2017, on January 10-11, the COPOM reduced the benchmark Selic interest rate to 13%. The 75-basis-point (bp) rate cut decision, the largest in nearly five…

Further Mexico rate reductions look likely

Location:

MEXICO

The move follows reports from the National Institute of Statistics on August 23 that GDP had grown by just 0.02% quarter-on-quarter in the second quarter (Q2) of 2019. With Q1…

Brazil faces stagnation risk in 2017

Location:

BRAZIL

The risk that the Brazilian economy will stagnate, rather than recover, this year.

Arce will use Bolivia’s reserves to fund investment

Location:

BOLIVIA

The drop was particularly notable in 2019, though less so in 2020. However, reserves reached arguably excessive levels during the middle years of the past decade. Even in 2020…

Mexican fiscal orthodoxy to be maintained amid crisis

Location:

MEXICO

Public finances have not so far deteriorated as dramatically as they might have done, considering the economic contraction caused by the COVID-19 pandemic. This is explained…

External factors may trigger more Mexican rate hikes

Location:

MEXICO

The hike was double the 25 bp expected by most economists and took place without any similar move from the US Federal Reserve (Fed), increasing the gap between the respective…

Mexico’s external deficits increase but are manageable

Location:

MEXICO

Inflows of foreign direct investment (FDI) and remittances should nevertheless finance such deficits comfortably. The Bank of Mexico (Banxico) also holds a substantial stock of…

Business sectors divided ahead of Brazil elections

Location:

BRAZIL

When Bolsonaro was elected in 2018, he enjoyed widespread private-sector support based on promises to implement radical free-market reforms and sound monetary and fiscal policies…

Brazil's bank lending will pick up after sharp decline

Location:

BRAZIL

Outlook for the banking sector.