February 07, 2025 18:13 GMT
LATAM: Week Ahead: Peru Interest Rate Decision, Brazil Inflation, BCCh Minutes
LATAM
- On the monetary policy front, the BCRP will consider another 25bp interest rate cut on Thursday, following the latest dip in CPI inflation. Meanwhile, the BCCh will publish the minutes to its Jan 28 MPC meeting on Wednesday, when it remained on hold and signalled an extended pause. On the data front, January CPI inflation in Brazil (Tuesday) and Argentina (Thursday) are the highlights.
- The BCB releases its usual Focus survey on Monday, which this week showed a slight increase in CPI expectations, as Selic rate forecasts remained stable.
- Brazil IPCA inflation data take the focus on Tuesday, with analysts anticipating a moderation in the headline rate to 4.58% y/y in January, from 4.83%. Mexico December IP figures also cross, while in Chile, the BCCh publishes its economist survey. Following strong activity and CPI data, the easing cycle looks set for an extended pause.
- The BCCh minutes on Wednesday will provide further guidance on the interest rate outlook in Chile, after the unanimous decision to keep rates unchanged last month. Brazil IBGE services volume data and Argentina wages also cross.
- On Thursday, focus turns to the BCRP interest rate decision, where the latest decline of inflation keeps the door open to another cut. Meanwhile, Argentina monthly CPI inflation is expected to slow further in January, while Brazil retail sales are due.
- The BCCh publishes its traders survey on Friday, while Colombia December retail sales, IP and trade are also on the docket.
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