Goldman Sees Brazil and Chile Seeking Window of Opportunity to Cut Interest Rates
- Central banks still uncomfortable about inflation pressures
- Mexico and Colombia likely ended rate hikes, Goldman says
Banco de Mexico headquarters in Mexico City, Mexico.
Photographer: Susana Gonzalez/Bloomberg
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Mexico and Colombia are likely done with monetary tightening, while Brazil and Chile may soon be looking for an chance to cut interest rates, according to Goldman Sachs Group Inc.
“The only two policy-active central banks during March to April, Colombia and Mexico, will most likely by end-May also be looking at peak-rates,” Alberto Ramos, Goldman’s chief Latin America economist wrote in a research note published Friday. “Central banks that have been on hold for longer, Brazil and Chile, could instead soon be looking for a window of opportunity to responsibly and credibly start to reduce the level of monetary policy restrictiveness.”