Latin America News
LAST UPDATE: May 16, 2025
Banxico Delivers Third Straight Half-Point Cut as Growth Slows
Bloomberg
The Bank of Mexico (Banxico) unanimously reduced its benchmark interest rate by 50 basis points to 8.5%, marking the third consecutive half-point cut. This decision comes amid sluggish economic growth and inflation within the target range.
Insight
Banxico's continued rate cuts reflect efforts to stimulate the economy, but ongoing trade tensions, particularly with the U.S., pose challenges to economic stability.
Chile central bank kept rate unchanged at 5% but considered a cut, minutes show
Reuters
The Central Bank of Chile maintained its benchmark interest rate at 5% during its latest meeting. However, meeting minutes revealed that policymakers considered a rate cut, citing concerns over slowing economic activity and inflation trends.
Insight
The central bank's deliberations indicate a cautious approach to monetary policy, balancing the need to support economic growth while keeping inflation in check.
Colombia's economy grew 2.7% year-on-year in first quarter
Reuters
Colombia's economy expanded by 2.7% year-on-year in Q1 2025, surpassing expectations. Growth was driven by sectors like arts, agriculture, and commerce, despite contractions in mining and construction.
Insight
The stronger-than-expected growth suggests resilience in Colombia's economy, though challenges remain in certain sectors. Continued diversification and investment are key for sustained growth.
Brazil retail sales hit record high in March
Reuters
Brazil's retail sales reached a record high in March 2025, driven by increased consumer spending and favorable economic conditions. The surge indicates a robust domestic demand.
Insight
The record retail sales highlight consumer confidence and economic recovery. However, sustaining this momentum will depend on broader economic policies and global market conditions.
Brazil's finance minister signals upcoming fiscal measures, rules out Bolsa Familia hike
Reuters
Finance Minister Fernando Haddad announced targeted fiscal measures to eliminate the primary deficit, clarifying there are no plans to increase Bolsa Familia payments. The measures aim to ensure fiscal responsibility without expanding social spending.
Insight
The government's focus on fiscal discipline, while maintaining social program levels, reflects an attempt to balance economic growth with budgetary constraints. The impact on social welfare and public sentiment will be critical to monitor.
Peru Economy Expanded 4.7% in March, Fastest Pace This Year
Bloomberg
Peru's economy grew by 4.7% in March 2025 compared to the previous year, marking the fastest pace of expansion this year, driven by sectors like agriculture and services.
Insight
The robust growth indicates a positive economic trajectory for Peru, suggesting resilience and potential for continued development amidst global economic fluctuations.
