The inflation is the greatest risk facing Latin American economies this year, but very close, with a minimal difference, they also identified geopolitical events between Russia and Ukraine as high-impact factors in the region, according to the results of the survey applied Bank of America Securities (BofA-Securities).
The investment fund managers consulted by the firm anticipate that these risk factors will be triggers for Bank of Mexico (Banxico) bring the rate to a range of 7 to 7.25% this same year at the end of the year.
According to the results of the survey, the inflationary pressure, consequence of the war, as well as the financial tension due to the normalization of rates in the United States, will cause the Central Bank of Brazil boost the selic rate to a level between 12% and 12.75 percent.
Investors adjusted their growth expectations for Mexico downwards to leave it between 0 and 0.25%, where 40% of those interviewed agree; this same expectation was indicated by the majority of those consulted the previous month, but only 20% had the prognosis.
50% of the sample anticipates that the brazil economy will register a growth between 0 and 0.25%, which is the same level projected by the same proportion of fund managers consulted.
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