Latin American Pulse for Friday, September 18, 2026
Three central banks moved this week and only Brazil cut. Argentina's economy shrank as its market rose, and Chile shuts for four days from today. The post Latin American Pulse for Friday, September 18, 2026 appeared first on The Rio Times .
This week, only Brazil reduced its policy interest rate among the region's three central banks. Brazil cut its Selic rate to 13.75% in a fifth consecutive reduction, promising to act with serenity and caution. Meanwhile, the Bank of Japan raised its rate to a 31-year high of 1.25%. The gap between Mexican and American policy rates is near a record low of 2.5 percentage points, the weakest for the Colombian peso, and the U.S. Federal Reserve raised its target range to 3.75 to 4%. Inflation forecasts in Chile have been raised to 6.81%.
Economies in the region are shifting towards exports, with manufacturing down 2.1%, public administration down 1.4%, and mining up 16.4%. GDP for the second quarter fell 0.6%, while unemployment rose to 7.9%, the highest level since 2021. The Merval rose 1.08% on the same day.
In Brazil, the Bolsa Família minimum payment increased by 15%, rising from 600 to 691 reais, roughly 117 to 135 USD, starting from 1 October. The programme reaches 19.3 million families, costing 5.8 billion reais (1.13 billion USD) in 2026 and 22.7 billion reais (4.42 billion USD) starting in 2027. This announcement came 17 days before the first round of the presidential election on 4 October.
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