LatAm: acceleration under control

- "The data released this week shows divergent movements between countries. On the one hand, Peru and Colombia continued to show signs of growth with positive expectations and confidence, while growth in Brazil stabilized despite the support provided by domestic demand and in Mexico industrial output showed signs of stagnation. Central banks continued to control appreciation pressures and overheating: in Chile the CB once again raised its policy rate by 50 bps to 2%, while in Peru the CB again increased reserve requirements. The new Colombian president re-established commercial relations between Colombia and Venezuela, although political tensions over bilateral trade remain."
- "Renewed fears over global cycles, with divergent effects on assets of the region's countries."
- "Events in the US and China have renewed appetite for safe assets. However, the credit market remained open for the region's issuers, as did the appeal of the currencies of economies with a higher growth profile. In spite of this, technical corrections in the region's currencies against the US dollar during the week cannot be ruled out."

BBVA Latin Weekly Observatory 20100813

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