2009: The Year Of The Dove

BMI View: As BMI has alluded to for some time, 2009 is gearing up to be all about disinflation, as concerns over price pressures give way to falling consumer confidence and sluggish economic activity. Once we see a decisive inflection point in headline price growth, Latin America's central bankers are likely to cut rates aggressively in a similar fashion to their developed world peers. With this is mind, next year's FM story could be all about local rates, and specifically, yield compression across the curve.

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