In Brazil, inflation expectations continue to cool off, while growth forecasts for 2010 keep heating up. In Mexico, industrial production data for April disappointed, suggesting that domestic demand remains on a slow recovery trajectory. Meanwhile, inflation expectations continue to deteriorate in Argentina, though moderately, and Chile’s central bank has initiated the tightening cycle with a 50-bp hike to 1%, above expectations. In Peru, economic activity results for April beat the consensus prediction.
According to the central bank Focus report released on[...]