11 Jan 2016
LatAm central banks’ activity this week – BBH
FXStreet (Edinburgh) - The research team at BBH has noted this week’s central bank meetings in the LatAm space.
Key Quotes
“Chile’s central bank meets Thursday and is expected to keep rates steady at 3.5%. CPI rose 4.4% y/y in December, back above the 2-4% target range after a brief move within it. As such, we think the tightening cycle will continue, albeit modestly. The bank just hiked 25 bp in December, and another one this month seems unlikely given the soft economy. A hike is likely later in Q1, however”.
“Peru’s central bank meets Thursday and is expected to keep rates steady at 3.75%. A small handful sees a 25 bp hike to 4.%. CPI rose 4.4% y/y in December, further above the 1-3% target range and the high for this cycle. As such, we think the tightening cycle will continue, albeit modestly. The bank just hiked 25 bp in December, and we think another one this month seems unlikely given the soft economy. A hike is likely later in Q1, however”.
Key Quotes
“Chile’s central bank meets Thursday and is expected to keep rates steady at 3.5%. CPI rose 4.4% y/y in December, back above the 2-4% target range after a brief move within it. As such, we think the tightening cycle will continue, albeit modestly. The bank just hiked 25 bp in December, and another one this month seems unlikely given the soft economy. A hike is likely later in Q1, however”.
“Peru’s central bank meets Thursday and is expected to keep rates steady at 3.75%. A small handful sees a 25 bp hike to 4.%. CPI rose 4.4% y/y in December, further above the 1-3% target range and the high for this cycle. As such, we think the tightening cycle will continue, albeit modestly. The bank just hiked 25 bp in December, and we think another one this month seems unlikely given the soft economy. A hike is likely later in Q1, however”.