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Week Ahead: Focus on Banxico Inflation Report And Brazil CPI, GDP

LATAM
  • There are no monetary policy decisions in the week ahead, but Banxico will publish its latest quarterly inflation report and BanRep will hold a board meeting to assess the latest data on the economy. Data wise, attention will be on Brazil half-month CPI and Q4 GDP, while Chile January activity and Peru Feb CPI will also cross.
    • Brazil IPCA half-month CPI data will be published on Tuesday, with the market expecting the annual rate of inflation to edge up to 4.51% y/y in the first half of February, from 4.47% previously. The BCB will also publish its weekly Focus survey, while Mexico trade data for January will cross.
    • On Wednesday, Banxico will publish its latest quarterly inflation report, with the focus on the implications for the monetary policy outlook and scope for a March rate cut. Chile January unemployment data will cross as well.
    • Chile will publish activity data for January on Thursday, including IP, retail sales and copper production. Brazil, Mexico and Colombia unemployment data for January will also be released. BanRep will hold its monthly (non-monetary policy) board meeting to assess the latest information about the economy.
    • Brazil Q4 GDP is expected to rise by 0.1% q/q on Friday, with the annual rate increasing slightly to 2.2% y/y. This would take full-year growth to 2.9%. In Chile, economic activity data for January will cross, while Peru February CPI and the latest Banxico economist survey will be released.

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