Chile c.bank expected to hike by at least 75 bps Latam stocks up By Ambar Warrick Oct 13 Reuters - Chile's peso traded sideways ahead of a widely anticipated interest rate hike by the central bank, while most other Latin American currencies were muted against the dollar after U.S. inflation rose past expectations. The USD lost 0.1% against the Rupees as investors waited comments from the central bank on how it would respond to a recent spike in inflation. The bank is largely expected to hike rates by at least 75 basis points bps to 2.25%, although some analysts have flagged the possibility of a 150 bps hike. The weak inflation result in September, the likely deterioration of inflation expectations, and the still-strong economic performance will likely lead the Bank to accelerate the removal of monetary stimulus, Credit Suisse analysts wrote in a note. The Bank expects the order of increase by 100 bps. Chile's Central Bank had effectively doubled rates to 1.5% in August, as a strong vaccination campaign helped spur a recovery from COVID-related restrictions. Still, the peso traded around 17 - month lows, amid pressure from weak copper prices, a shock jump in inflation and general weak trends surrounding emerging markets. Other latin American currencies were flat on Wednesday as the dollar was supported by U.S. consumer price data coming slightly above expectations. The reading stoked expectation that the Federal Reserve will announce a tapering of stimulus next month, which is likely to push up interest rates in the emerging markets and pressure developed economies. A director at the Brazilian Central Bank on Wednesday said that the risk of out of control inflation in the United States would create a much more challenging outlook for emerging markets. Concerns over rising inflation have hurt emerging market assets in recent months with a spike in oil prices adding more pressure on several import-reliant economies. Brazilian stocks rose 0.2% as Economy Minister Paulo Guedes declared that the government remained committed to pushing through tax and public administration reforms and that long-term fiscal sustainability remains critical. Most of the emerging market stocks rose, following a mild recovery in regional stocks.