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Bolsonaro boost continues, Banxico a bit less hawkish

Brazilian markets have performed strongly this week as hopes for business-friendly reforms under President Jair Bolsonaro have continued to build, but we think that the rally may run out of steam before long. Elsewhere, the minutes to the Mexican central bank’s December policy meeting were a bit less hawkish than those from the previous meeting, but we still expect one final rate hike in the current tightening cycle.

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