This week’s larger-than-expected interest rate hike in Mexico alongside comments from central bank officials elsewhere suggest that worries about strong underlying price pressures are putting policymakers in a more hawkish mood than we had anticipated. We were already on the hawkish side of the interest rate debate but, if anything, the risks to our interest rate forecasts are skewed to the upside. Meanwhile, in Brazil, next week's National Monetary Council meeting will give a better sense of whether President Lula’s attacks on the central bank are rhetoric or something more serious.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services