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Summary – FOMC, Copom & Peru CPI In Focus

LATAM
  • The Fed are expected to downshift to a 25bps rate hike today, with focus on any hints from the Fed chair on their views of the peak Fed Funds Rate. The USD Index is marginally lower on the day at typing, and is within range of the multi-month low printed in late January at 101.504.
  • Peru CPI is due at 1500GMT/1000ET where countrywide protests following the removal of Pedro Castillo as President has prompted analysts to expect a significant surge in the January data. Headline reading is expected to rise to 8.97% Y/y.
  • Shortly after the Fed, we will have the Copom rate decision where the BCB are unanimously expected to hold rates at 13.75%. The full MNI preview with analyst views is here: https://roar-assets-auto.rbl.ms/files/50965/MNI%20Brazil%20Central%20Bank%20Preview%20-%20February%202023.pdf

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