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At the end of last week, negotiations between the Ministry of Finance and the ad hoc committee of VRI holders ended without a deal. However, the parties signalled that there are good prospects of reaching an agreement in the future.
The monthly current account (C/A) deficit stood at US$3.2bn on a record foreign trade-in-goods gap of US$5.0bn in September. Import of goods hit a record high at US$8.0bn in September (+34% YoY) on surging imports of machinery and equipment. Meanwhile, export was almost unchanged vs last September.
The central bank maintained the key rate at 15.5%, indicating that monetary easing is unlikely before 2026, as inflation risks remain high. The regulator left the rate unchanged and it now expects two 50bp cuts, previously projected for this year, to be postponed.
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