Latin America Ramps Up Caution on Rates Even as Fed Cues Easing

Three Latin American central banks signaled unease over inflation to justify their cautious stance on interest rates Wednesday, contrasting with the Federal Reserve’s growing confidence that the start of its easing cycle is near.

Brazil held its benchmark Selic unchanged for the second straight month, flagging new risks to its consumer price outlook. Chile surprised most economists by pausing its yearlong easing cycle, reiterating the bulk of borrowing cost drops is done. While Colombia delivered a half-point cut, the split vote indicated push-back against prospects of faster reductions.