Itaú BBA - Reform effort opens opportunities in Argentina

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Reform effort opens opportunities in Argentina

December 12, 2017

After the result of the mid-term elections, Argentinian government is pushing for reforms to achieve fiscal consolidation.

STRATEGY TEAM:
 

Ciro Matuo, CNPI, ciro.matuo@itaubba.com
Eduardo Alonsoeduardo.marza@itaubba.com


For the full report, see enclosed file
 

Highligths

  • After the result of the mid-term elections, the Argentinian government is pushing for reforms to achieve fiscal consolidation. In fact, the Senate moved faster than had been expected and passed in late-November three key fiscal bills: the fiscal responsibility law, the fiscal pact with the provinces and the pension reform.
  • In Colombia, inflation surprised to the upside in November, which, together with the sticky core prices, will likely prompt Banrep to stay put in December. Looking further ahead, we think the cautious approach to monetary policy normalization in central economies will allow a countercyclical response, and the central bank will resume interest rate cuts early in 2018.


 



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