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Data released last week confirmed that Mexico's economy stumbled in the first half of the year, hurt by a temporary shocks in both the industrial and services sectors, and heightened political uncertainty, due to policy mistakes at the outset of AMLO's presidency.
Mexico's inflation nudged up to a fresh 16-year high in August, but the details of the report confirmed that underlying pressures are easing, in line with our core view.
Brazil's central bank kept the Selic policy rate at 6.50% this week, as markets broadly expected.
Brazil's outlook is still improving at the margin, as positive economic signals mix with relatively encouraging political news.
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