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LatAm Weekly

All Signs Point to April Hike for Brazil

EXECUTIVE SUMMARY

The strong hawkish tone of the minutes from Brazil’s March 17 central bank meeting signals that the beginning of the tightening cycle will likely be in April, in line with RGE’s earlier assessments. In Mexico, inflation expectations are at risk of deteriorating further, while trade and unemployment data suggest that domestically driven economic activity remains slow. Meanwhile, Colombia avoided a negative economic reading in 2009, but growth prospects for 2010 remain well below potential. Uruguay's growth prospects are rosier, after a strong GDP reading for Q4 and[...]

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