South America

Chile’s consumer prices rose more than forecast in July, supporting the central bank’s decision to hold its interest steady last week, interrupting a year of aggressive monetary easing amid risks including higher energy costs, Bloomberg News reported. Prices increased 0.7% from June, more than the 0.6% median estimate from analysts in a Bloomberg survey. The annual inflation rate ticked up to 4.6% in the chained series, the National Statistics Institute reported on Thursday.

Chile’s central bank kept its key interest rate unchanged, surprising most economists by pausing its yearlong easing cycle as inflation pressures increase, while indicating that the halt was likely to be temporary, Bloomberg News reported. Policymakers voted unanimously to hold borrowing costs at 5.75% on Wednesday, as expected by just four of 20 analysts in a Bloomberg survey. The other 16 forecast a quarter-point cut. Central bankers led by Rosanna Costa interrupted an easing cycle that has shaved 550 basis points from rates in just over a year.

Brazil’s annual inflation accelerated more than expected by all analysts in early July, supporting traders’ bets the central bank will have to hike borrowing costs later this year after holding them steady next week, Bloomberg News reported. fficial data released Thursday showed consumer prices increased 4.45% from a year earlier, above the 4.37% median estimate from analysts in a Bloomberg survey. Monthly inflation stood at 0.3%. Policymakers are expected to maintain borrowing costs in double-digits for the foreseeable future as inflation forecasts run above the 3% target.

A group of Latam Airlines Group SA shareholders raised $456 million in an initial public offering of American depositary shares, Bloomberg News reported. The shareholders in the Santiago-based airline sold 19 million ADS on Tuesday for $24 each, according to a statement. Each ADS represents 2,000 of Latam’s common shares, which trade on the Chilean Stock Exchange. The sellers are Sixth Street Partners, Strategic Value Partners, Olympus Peak, Monarch Funds, Värde Funds and Marathon Fund, the statement shows.

Brazil's central bank said on Monday a new feature for its popular Pix instant payment system aimed at automatically paying recurring bills will be launched next June instead of this October, as had been originally scheduled, Reuters reported. The delay follows repeated calls from the Brazilian central bank's governor, Roberto Campos Neto, for the approval of a constitutional amendment granting financial autonomy to the institution. Campos Neto argues that given the central bank's current budgetary situation, there may come a time when policymakers face difficulties in operating Pix.

President Luiz Inacio Lula da Silva cast doubt on the need to meet Brazil’s fiscal targets, saying in an interview with a local TV station that he is “not obligated to set a goal and stick to it” if he decides he “has more important things to do,” Bloomberg News reported. “It’s just a matter of vision,” Lula said in the Tuesday interview with Record TV. “This country has no problem if it is a zero deficit, if it is a 0.1% deficit, if it is a 0.2% deficit. There is no problem for the country.

Brazil’s economy grew slightly less than expected in May though prior figures were revised up, the central bank’s main gauge of activity showed amid signs that borrowing costs will stay high for longer, Bloomberg News reported. The bank’s economic activity index, a proxy for gross domestic product, rose 0.25% from April, below the 0.3% median estimate from analysts in a Bloomberg survey. Still, April’s monthly growth was revised to 0.26% from 0.01% previously, according to data published on Monday. From a year ago, the gauge gained 1.3%, the report added.

Argentina's economy ministry said on Sunday it will purchase just over $1.5 billion from the central bank to pay the total interest on the country's "Globales" and "Bonares" bonds due in January 2025, Reuters reported. The operation will use part of the financial surplus achieved in the first half of the year, which had accumulated to 2.3 trillion Argentine pesos ($2.5 billion) by May, the ministry said in a statement. The ministry added that $1.528 billion will be deposited in an account at trustee Bank of New York and will be available only to be used for paying the interest on the bonds.