Banco de Mexico (Banixco) meets Thursday and is expected to hike rates 25 basis points to 8.25 percent. Mexico‘s mid-December CPI will be reported Friday. CPI rose 4.72 percent year-over-year in November, the lowest since June but still well above the 2-4 percent target range.
The central bank (COPOM) releases its quarterly inflation report Thursday. Brazil then reports mid-December IPCA inflation and November current account data Friday. IPCA rose 4.1% year-over-year in November, the lowest since May and in the bottom half of the 3-6 percent target range. COPOM tilted even more dovish this month; markets expectations for the first rate hike have been pushed out to the second half of 2019.
Central bank meets Friday and is expected to keep rates unchanged at 4.25 percent. The country’s CPI rose 3.3 percent year-over-year in November, slightly above target but still within the 2-4 percent target range. With oil prices still vulnerable, analysts believe the central bank will be cautious in starting the tightening cycle.
November trade data is due out today, with exports expected to rise 4.7 percent year-over-year and imports by 11 percent year-over-year. Bank Indonesia (as scheduled) meets Thursday and is expected to keep rates unchanged at 6.0 percent. CPI topped 3.2 percent year-over-year in November, the highest since May but still below the 3.5 percent target.