BCB outlook, Chile’s vaccine drive, Ecuador’s election

The approval of a bill to make Brazil’s central bank (BCB) independent could, in the long term, help to reduce inflation and bond yields. In the meantime, the BCB’s governor has sought to downplay expectations for a rate hike in March, and the incoming data are also likely to argue against tightening. Elsewhere, the success of Chile’s vaccination drive over the past week supports our optimistic view about the economy’s prospects. Finally, Andres Araúz emerged as the clear frontrunner in the first round of Ecuador’s presidential election, and his continued interventionist policy stance suggests there is little upside to the country's sovereign dollar bonds.