(Updated at 1510 GMT)

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Brazil lifts 2025 inflation projections to 4%

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Brazil's Suzano up on dropping plan to buy International

Paper ( IP )

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Turkey, Czech announce monetary policy decisions

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Rand drops on reported discord over cabinet posts

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Stocks, FX off 0.5% each

By Johann M Cherian

June 27 (Reuters) - Most Latin American currencies and

equities slipped on Thursday, while investors braced for an

interest rate decision out of Mexico and exercised caution

following a change in inflation forecasts out of Brazil.

Mexico's peso slipped 0.1% ahead of a central bank

decision due at 1900 GMT. A majority of economists polled by

Reuters expect borrowing costs to be left unchanged at 11%

against the backdrop of persistent price pressures and as the

U.S. Federal Reserve delays its monetary easing cycle.

"Regardless of the upcoming Fed's decisions, we continue to

think that Banxico has ample room to resume the rate cut cycle

after the first cut back in March," a group of economists led by

Javier Amador at BBVA research said.

"Doves will likely opt for delaying an uneasy debate with

the ultra hawks and vote for a pause driven by the recent

exchange rate volatility and political uncertainty."

Cabinet appointments in President-elect Claudia Sheinbaum's

government were also on tap through the day. The peso had

depreciated significantly and is down over 7.4% year-to-date

following her landslide win earlier in the month.

MSCI's index tracking Latam currencies

slipped 0.5%, with Brazil's real hovering at levels last

seen in January 2022 it hit in the previous session.

Brazil's local central bank upped its 2025 inflation

forecasts to 4%, citing stronger-than-expected activity which

led it to halt interest rate cuts earlier this month. The

regulator has a continuous inflation target of 3%.

Currency of copper producers, Chile and Peru

strengthened 0.3% each, as prices of the red-metal rebounded

from a two-month low.

On the equities front, MSCI's index tracking Latin American

stocks slipped 0.5%.

Brazil's Bovespa index climbed 0.6%, with Suzano

jumping 13.8% after the pulpmaker said it has

terminated talks to buy International Paper ( IP ).

Petrobras climbed 1% after brokerage Bank of

America upgraded the oil firm to "buy".

Equatorial advanced 5% after the power company

was the only bidder for hold a 15% stake in water utility Sabesp

, which is currently under a privatization process.

Elsewhere, Bolivia's boliviano edged up 0.1% in thin

trades after an attempted coup was thwarted.

Czech's koruna weakened 0.4% to an eight-week low

against the euro and yield on the 5-year bond slipped 3 basis

points after the local central bank trimmed its benchmark

interest rate by 50 basis points to 4.75%, more than

expectations.

Turkey's lira showed little reaction after the

central bank left its main interest rate unchanged at 50%.

South Africa's rand depreciated over 1% on reports of

major disagreements over cabinet posts.

Kenya's shilling slipped as civil unrest continued

even after the president bowed to pressure to withdraw a tax

hike bill.

Key Latin American stock indexes and currencies:

Latin American market

prices from Reuters

Stock indexes Latest Daily %

change

MSCI Emerging Markets 1081.78 -0.41

MSCI LatAm 2169.67 -0.56

Brazil Bovespa 123231.15 0.48

Mexico IPC 52171.95 -0.56

Chile IPSA 6491.47 -0.32

Argentina MerVal 1588852.94 0.913

Colombia COLCAP 1373.33 0.32

Currencies Latest Daily %

change

Brazil real 5.5314 -0.24

Mexico peso 18.3450 -0.11

Chile peso 950.1 0.06

Colombia peso 4161.6 -0.41

Peru sol 3.82 -0.05

Argentina peso 911.0000 0.11

(interbank)

Argentina peso 1330 2.63

(parallel)