LatAm central banks in the limelight this week – BBH

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 13, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Edinburgh) - The research team at BBH has assessed this week’s central banks’ meeting in the LatAm space.

    Key Quotes

    “Central bank of Chile meets Thursday and is expected to hike rates 25 bp to 3.25%. However, the market is almost evenly split and many see no move. CPI rose a lower than expected 4.6% y/y in September, down from 5% in August but still above the 2-4% target range. Taken in conjunction with the firmer peso, we think the bank could stand pat this month. The bank has leaned more hawkish in recent months but whatever the timing of the first hike, we think the tightening cycle will not be aggressive”.

    “Central bank of Peru meets Thursday and is expected to keep rates steady at 3.5%. It just hiked at its September meeting, and officials have said that the next one was probably not needed for a couple of months. Another hike may be seen this year, but the pace is IP data was weaker than expected, rising only 3% y/y. The economy is slowing, but the central bank has been on hold since its last 25 bp hike to 3.25% back in July 2014”.
    For more information, read our latest forex news.

Share This Page

free forex signals