Ecuador votes, Brazil risks easing, Banxico to cut

Sovereign debt risks in Ecuador will remain high regardless of Sunday’s election result and another debt restructuring is likely in the medium term. Even so, there could still be a window of opportunity for a short-lived rally in the country’s bond market. In Brazil, events this week suggest that some of the downside risks to the economic outlook have eased. Finally, Mexico’s central bank is likely to deliver a final cut in its easing cycle next week and then keep interest rates low for longer than most expect.