Chavez's 'reverse miracle' with Venezuela's economy

Venezuelan President Hugo Chavez's critics took advantage of his absence for cancer treatment in Cuba to blame him for all kinds of misdeeds, but it's time to give him credit for having performed a true economic miracle in his country.

I'm not kidding. What Chavez has done in Venezuela over the last 12 years is nothing short of an economic miracle: Despite benefiting from the biggest oil boom in Venezuela's history, he has somehow managed to turn the country into a shambles.

Mexican Bank Holds Rates Steady On Tame Inflation, Slow Growth

MEXICO CITY—The Bank of Mexico on Friday left its overnight interest rate target unchanged at 4.5%, highlighting a slowdown in economic activity and a lack of overall inflation pressures in the economy.

The decision to leave the policy rate at the level it has been at since July 2009 came as no surprise, with the central bank widely expected to keep rates unchanged until the second quarter of 2012.

Peru May Hold 4.25% Rate for Second Month as GDP Slows Over Humala Concern

Peru’s central bank will probably keep its benchmark lending rate unchanged for a second month as inflation and economic growth slow on concern President-elect Ollanta Humala’s policies may damp investment in Latin America’s sixth-biggest economy.

The seven-member board will keep the overnight rate at 4.25 percent today, according to 16 of 17 economists surveyed by Bloomberg, after unexpectedly holding the rate unchanged at last month’s meeting for the first time this year. One analyst predicts a quarter-point increase to 4.50 percent. The board will announce its decision at about 7 p.m. New York time.

Brazil's Mantega mulls new currency measures

LONDON, July 5 (Reuters) - Brazil will continue to act to
curb the strength of its currency, with restraining excess
speculation in the futures and derivatives markets among
possible options, the country's finance minister said on
Tuesday.

Speaking on the sidelines of a conference in London,
Finance Minister Guido Mantega also said Latin America's
largest economy was on track for growth of around 4.5 percent
this year -- a forecast higher than the 4.0 percent predicted
by the central bank and the 3.94 percent seen by analysts.

SABMiller lifts Latin America beer target on economy boost

SABMiller, the world's No. 2 brewer and Anheuser-Busch InBev rival, raised its forecast on Tuesday for beer volume growth in its biggest region, Latin America, due to price cuts and a strengthening economic recovery.

The London-based brewer of Grolsch, Peroni and Miller Lite, which is bidding for Australian group Foster's, said regional beer volume in April-June was up around 6 percent while its key Colombian market had seen 10-percent plus volume growth in June.

In Americas, Brazil's Slide Speaks Loudly

While many Latin American stock markets took a hit during the second quarter as the global economic recovery sputtered, Brazil's benchmark Ibovespa index has not only been the worst performing in the region but also one of the weakest in the world.

Global crises such as the earthquake, tsunami and nuclear meltdown in Japan and Greece's continuing debt woes have crimped the economic recovery and weighed heavily on the index of Latin America's biggest economy. The commodity-heavy Ibovespa lost 9% in the second quarter, as Brazilian policy makers raised interest rates to stem inflationary pressure.

The Brazilian real has soared to a 12-year high against the dollar, reigniting Brazil’s currency war fears and worsening the economic headache for President Dilma Rousseff.

The real traded at a high of 1.5523 versus the US currency on Friday, its strongest level since just after it was first floated in 1999, as investors sought higher-yielding assets following the easing of the Greek debt crisis.