BofA Sees Rate Cuts Fueling Latin America Equity Sales in 2026

Bank of America Corp. expects Latin America’s equity capital markets to gain steam next year even as presidential elections in Brazil, Colombia and Peru stir up market volatility.

“With Brazil going into an election year, markets will likely have their ups and downs,” Augusto Urmeneta, BofA’s president for Latin America, said in an interview. “But regardless of the outcome, it’s likely to be a good year as interest rates are expected to drop,” he said, adding that activity in Argentina, Chile, Peru and Mexico will probably also be stronger.

Augusto Urmeneta

Source: Bank of America

Brazil’s benchmark interest rate has held at 15% since ...