Inflation in Mexico stabilised at 7.4% y/y in December and, with price pressures likely to remain strong, we expect Banxico to deliver another 50bp rate hike, to 6.00%, at its meeting in February. Meanwhile, the further rise in Chilean inflation, to 7.2% y/y last month suggests that the central bank will continue its aggressive tightening cycle with another 125bp hike, to 5.25%, at its next meeting.
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