Lat Am easing cycles show increasing divergence

While Latin American central banks seemed to act in unison when raising interest rates (albeit with Brazil a bit ahead of the pack), the raft of interest rate decisions in the region yesterday highlighted that, on the way down, policymakers have very different takes on inflation risks – and the scope to ease monetary policy. At a regional level, though, the broad picture is that we think analysts’ interest rate forecasts sit a bit too far on the dovish side.