The fall in Mexican core services inflation in the first half of October in principle gives Banxico space to press ahead with another 25bp rate cut next month, but much will hinge on the outcome of the US election; an abrupt move down in the peso could put the easing cycle on pause. Elsewhere, the rise in Brazil’s inflation rate to 4.5% y/y and hawkish comments from policymakers point to a 50bp hike, to 11.25%, next month.
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