EMERGING MARKETS-Latam currencies slip; Mexico’s peso steady after central bank meeting minutes

* Turkey central bank hikes rate sharply, sees peak soon * Argentinian stocks rally for fourth straight day * Latam stocks up 0.1%, FX down 0.2% (Updated at 1:53 p.m. E.T./ 1853 GMT) By Johann M Cherian and Shashwat Chauhan Nov 23 (Reuters) – Most Latin American currencies edged lower in a holiday-thinned session on Thursday, though the Mexican peso held steady after minutes from its central bank’s previous meeting showed discussions of possible rate cuts next year. MSCI’s index tracking Latin American currencies fell 0.2% while the index tracking stocks advanced 0.1%. Mexico’s peso was largely unchanged after minutes from the country’s central bank latest meeting showed multiple members of the governing board brought forward the idea of discussing cuts to the key interest rate during the first quarter of 2024. “In our view, the minutes make it clear that rate hikes are now off the table, a December cut is also not going to happen and a cut in Q1 24 is very likely, albeit this could be in February or March,” Barclays analysts wrote. The local stock index added 0.5%. Data earlier in the day showed annual inflation in the region’s top economy edged up to 0.63% in its mid-November reading, from 0.24% the previous month. Trading worldwide was expected to be quiet due to the Thanksgiving holiday in the U.S. Peru’s Central Bank President Julio Velarde said fears of a strong El Nino weather phenomenon are causing some investments in the country to be postponed. The sol was last down 0.3%. Brazil’s monetary policy director Gabriel Galipolo said that variables with a higher transmission capacity for monetary policy have performed well, even amid international turbulence, including fluctuations in the exchange rate and oil prices. The real was flat. The local stock index Bovespa climbed 0.3%, with Bradesco adding 2.8% after the lender said its board of directors has elected Marcelo de Araujo Noronha as the firm’s new chief executive. Meanwhile, Argentina’s Merval index gained for the fourth-straight session, adding 4.9%. The country raised taxes on U.S. dollar purchases destined for savings or made with bank cards to protect the central bank’s limited reserves, weeks before President-elect Javier Milei assumes office on Dec. 10. Separately, a bank source told Reuters that Argentina’s central bank debated an interest rate hike at its directors meeting on Thursday. The Colombian peso was flat, while the Chilean peso fell 0.4% against the dollar. Elsewhere in emerging markets, Turkey’s lira pared some gains and traded at 28.83 to the dollar after the local central bank raised its policy rate by a larger-than-expected 500 basis points to 40%. South Africa’s rand rose 0.4% against the dollar after the country’s central bank stuck to its previous hawkish tone as it kept its main lending rate unchanged for the third meeting in a row. Key Latin American stock indexes and currencies: Stock indexes Latest Daily % change MSCI Emerging Markets 986.99 0.34 MSCI LatAm 2463.66 0.14 Brazil Bovespa 126468.11 0.34 Mexico IPC 52929.57 0.49 Chile IPSA 5807.47 0.12 Argentina MerVal 879667.25 4.895 Colombia COLCAP 1123.63 -0.74 Currencies Latest Daily % change Brazil real 4.9044 -0.06 Mexico peso 17.1909 -0.08 Chile peso 875.6 -0.43 Colombia peso 4063.18 0.07 Peru sol 3.7338 -0.27 Argentina peso 356.9500 -0.13 (interbank) Argentina peso 1025 5.37 (parallel) (Reporting by Johann M Cherian and Shashwat Chauhan in Bengaluru Editing by Marguerita Choy and Diane Craft)