Inflation expectations are still deteriorating rapidly in Brazil, while current inflation readings show some stabilization as seasonal effects wear off. We maintain our call that the central bank will initiate the tightening cycle on April 28 with a 50-basis-point (bp) hike; however, the possibility of a 75-bp hike continues to grow. Meanwhile, in Mexico, the U.S. economic rebound remains the main force reviving the economy. In Chile and Peru, inflation expectations deteriorated further this week.
The April 12 central bank Focus report indicates that[...]