More signs of weak economic activity, while CBs react to the currency depreciation

In recent days, data in countries such as Chile and Mexico have reinforced the perception of weak economic activity dynamics at the end of 2014. However, as recent indicators have confirmed, in general that has had a limited impact on labour markets in the region. The ongoing currency depreciation has led the Colombian central bank to highlight the pass-through risks in its minutes and the monetary authority in Brazil to extend its offer of USD swaps. In Peru, more measures to reduce the dollarisation of banking loans were announced during the holidays.

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