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EMERGING MARKETS-Chilean peso leads Latam FX higher after c.bank minutes

    * August 75-bps hike was unanimous -Chile c.bank minutes
    * Brazil's Bradespar jumps, limits Bovespa declines  
    * Colombian government signs tax reform bill into law
    * Argentine inflation rise by the least in a year 

 (Updates prices throughout)
    By Susan Mathew and Shreyashi Sanyal
    Sept 15 (Reuters) - Hawkish central bank minutes lifted
Chile's peso on Wednesday, while Bradespar, one of
the biggest shareholders of Brazilian miner Vale,
surged on a plan to distribute almost $1 billion in Vale shares.
    The Chilean currency rose 0.8%, extending gains to a
fourth straight session. 
    Along with a boost from rising copper prices, Chile's
central bank minutes that showed a 75-basis-point hike in the
key interest rate last month was a unanimous decision as the
economy recovered strongly from the fallout of the COVID-19
pandemic. 
    "The (central bank's) Board reiterated the message to bring
the rate to neutral by the first half of 2022, which translates
into 50 to 75bp hikes over several meetings," strategists at
Citi said in a note to clients.
    "Markets are already pricing 275bp in hikes over the next 12
months," they said.
    Most other Latin American currencies also rose as the dollar
weakened, with all eyes on next week's U.S. Federal Reserve
policy decision.  
    Colombia's currency gained 0.3%. The government on
Tuesday signed a heavily revised tax reform bill into law. Citi
strategists said the law will help stabilize debt levels but not
reduce it considerably.
    "For debt convergence, a new tax reform is necessary in the
next administration. Meanwhile, the current bill limits the next
administration's fiscal space ... as part of the new fiscal rule
..." 
    Brazil's real was 0.2% higher after data showed the
country's economic activity rose more than expected in July.  
    The real is down about 2% so far this month,
underperforming regional peers as well as a broad index of
emerging market currencies, as political tensions rise. 
    Meanwhile, losses on Sao Paulo's main equity index
were capped by a 5.1% jump in holding company Bradespar SA after
it announced its plan for distributing shares of Vale SA.

    Bradespar, owns a 5.73% stake in Vale, worth 27.6 billion
reais based on Tuesday's closing price, and after the
distribution its stake will be 3.23%. 
    Airline Gol shares rose 3.8% after announcing an
exclusive code-share agreement with American Airlines,
under which it will receive a $200 million equity investment.
  
    In Argentina, data on Tuesday showed inflation rose 2.5% in
August, the least in over a year, but the annual rate still
stands at 51.4%. Analysts at Credit Suisse expect inflation to
end the year at 50%.
    Argentina's draft budget, expected to be unveiled this week,
would include plans for economic growth of between 3% and 4% in
2022, a government source told Reuters on Tuesday, slightly
lower than targets the government had previously flagged.

        
    Key Latin American stock indexes and currencies at 1912 GMT:
    
          Stock indexes                   Latest    Daily %
                                                    change
 MSCI Emerging Markets                     1289.03    -0.55
 MSCI LatAm                                2404.23    -0.48
 Brazil Bovespa                          115160.06    -0.88
 Mexico IPC                               52229.97      0.8
 Chile IPSA                                4433.85     0.55
 Argentina MerVal                         77192.96   -2.274
 Colombia COLCAP                           1322.47     0.93
                                                           
              Currencies                  Latest    Daily %
                                                    change
 Brazil real                                5.2463     0.23
 Mexico peso                               19.8656     0.19
 Chile peso                                  777.4     0.77
 Colombia peso                             3807.57     0.54
 Peru sol                                   4.1001    -0.13
 Argentina peso (interbank)                98.2500    -0.03
                                                    
 Argentina peso (parallel)                     182     0.27
                                                    
 
 (Reporting by Susan Mathew and Shreyashi Sanyal in Bengaluru;
editing by Jonathan Oatis)
  
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