This week, Brazil and Colombia’s central banks and Mexico’s are meeting to discuss rates, with experts suggesting possible rate cuts in Brazil and Colombia based on economic signals.
Brazil’s cenral bank might reduce rates by 50 basis points, citing a need for caution.
Colombia could follow with a similar cut to 12.25%, keeping options open for more adjustments.
Mexico, however, may not change its 11.25% rate. Yet, it signals possible future cuts as internal demand grows and inflation trends down.
Argentina and Chile will also report their Q4 GDP data. In Argentina, uncertainty has hindered growth, likely showing a contraction.
Chile’s growth seems slightly below its potential, indicating economic challenges.
LatAm’s Weekly Business Highlights: March 18-22, 2024:
- Argentina reveals its GDP on March 19. Experts predict a downturn, marking continuous economic struggles. This aligns with a broader pattern of contraction.
- Brazil’s January economic index will be released on March 18. A slight downturn suggests a cautious start to 2024, and the March 19 rate decision could reflect this caution.
- Chile posts its Q4 GDP on March 18. Expected mild growth points to ongoing economic adjustments.
- Colombia reports its trade balance and economic index on March 18, with a likely deficit. Its March 22 rate decision may further ease monetary conditions.
- Mexico announces January retail sales and economic activity on March 21 and 22, respectively. Stable rates but hints at future cuts show a balancing act between growth and inflation.
These decisions matter as they influence economic stability and growth in the region. Rate adjustments can help manage inflation and stimulate or cool down economic activities.
The outcomes will shape the economic landscape in these countries, affecting global market perceptions.