Latin America News
LAST UPDATE: August 27, 2025
Bank of Canada Governor says bank will not review 2% inflation target next year
The Bank of Canada will maintain its 2% inflation target in the upcoming 2026 review, stressing its role in anchoring expectations amid global uncertainty.
Insight
By reaffirming its inflation benchmark, the bank signals policy consistency while preparing to address supply-side shocks affecting core inflation.
Canada Factory Sales Estimated to Have Risen 1.8% in July
Preliminary figures suggest Canada’s manufacturing sales rose by 1.8% in July (month-on-month), while wholesale sales likely increased by around 1.3%.
Insight
These gains suggest improving demand dynamics and could help offset economic headwinds from international trade disruptions.
Canada and allies to explore funding critical mineral projects, minister says
Canada is planning joint funding initiatives for critical mineral projects across allies to reduce reliance on China and diversify supply chains.
Insight
This reflects a strategic pivot toward securing essential resource flows amid global geopolitical shifts and supply-chain vulnerabilities.
Chile in final phase of negotiations to reach trade deal with US, Chilean official says
Chile is nearing a trade agreement with the United States focused on tariff and trade cooperation; discussions are now virtual but in their final stage.
Insight
If finalized, the deal could strengthen trade ties, notably for Chile’s key exports like copper, and signal regional economic integration.
Chile continues to qualify for IMF flexible credit loan following mid-term review
Chile remains eligible for a flexible IMF credit facility after passing a midterm review, allowing continued access to beneficial financial support.
Insight
The outcome provides fiscal breathing room and supports stability amid global economic uncertainties and potential shocks.
Argentina central bank raises banks’ reserve requirements after corruption allegations
Argentina’s central bank raised reserve requirements by 3.5 percentage points to ~45%, allowing banks to use peso-denominated securities worth ~7.7 trillion pesos (~US$5.79 billion), effective September 1, amid political turmoil linked to corruption allegations.
Insight
The move aims to soothe markets ahead of October legislative elections, but tightening liquidity at such levels risks choking off economic recovery.
Brazil’s mid-month inflation index posts first drop in two years
Brazil’s IPCA-15 fell by 0.14% in mid-August—its first drop since July 2023—driven by cheaper electricity, housing, food, transport, and communication costs; 12-month inflation eased to 4.95%, edging closer to the central bank’s target.
Insight
The data gives hope that aggressive rate hikes and macro policy are starting to curb inflation, potentially allowing for stabilization of monetary policy.
Presidential hopeful vows to negotiate Bolivia $14 billion debt
Presidential candidate Jorge “Tuto” Quiroga pledged to renegotiate Bolivia’s US$14 billion external debt if elected.
Insight
The promise seeks to reduce debt servicing burdens and stabilize the economy, potentially appealing to voters amid economic strain.
