*

Brazil central bank cuts rate by 25-bps

*

Rate decisions in Mexico, Peru awaited

*

EM share index down 1.7%, FX off 0.9%

By Shashwat Chauhan

May 9 (Reuters) - Brazil's real lagged its Latin

American peers on Thursday, weakening after its central bank

slowed the pace of interest rate cuts, while focus remained on

monetary policy verdicts in Mexico and Peru later in the day.

The Brazilian real shed 1.5% to 5.16 a dollar after

the central bank cut interest rates by 25 basis points, a

smaller reduction after six straight cuts of twice that size,

despite dissent from all four directors appointed by President

Luiz Inacio Lula da Silva.

"No clear guidance was provided, but we do not think the

cycle is over," Barclays strategists said.

"We expect a weaker BRL and a steeper curve on the

decision."

Mexico's peso was last down 0.1% in choppy trading

after data showed 12-month inflation in South America's second

biggest economy accelerated slightly more than expected in

April, suggesting the local central bank will keep interest

rates on hold when its board meets later in the day.

Chile's peso gained 0.3% against the U.S. currency,

while the Colombian peso slipped 0.1% after data

overnight showed consumer prices in the country rose 0.59% in

April, taking cumulative 12-month price growth to 7.16%, in-line

with market expectations.

Peru's sol dipped 0.3% ahead of its local interest

rate decision later in the day, where it is widely expected to

cut interest rates by at least 25 basis points.

By 10:17 a.m. ET (1417 GMT), MSCI's index for Latin American

currencies shed 0.9%, while a gauge for stocks

eased 1.71%, both hitting one-week lows.

Brazil's main stock index fell 1.6%, with utilities

and consumer discretionary shares leading declines.

Brazilian power giant Eletrobras lost over 5%

after reporting a 19% fall in first quarter net profit, while

education company Cogna dropped around 12% after

reporting first quarter results.

Bourses in Chile and Colombia were up

around 0.3% and 0.2%, respectively, while Mexico's main index

was down 0.1%.

HIGHLIGHTS

** Polish central bank sticks to cautious stance and keeps

rates stable

** Panama president-elect rules out First Quantum talks

until arbitrations dropped

** IMF maintains Nigeria growth forecast at 3.3% for 2024

Key Latin American stock indexes and currencies:

Stock indexes Latest Daily %

change

MSCI Emerging Markets 1063.37 -0.3

MSCI LatAm 2463.62 -1.62

Brazil Bovespa 127427.77 -1.59

Mexico IPC 57060.01 -0.04

Chile IPSA 6676.23 0.48

Argentina MerVal 1441806 -0.6

Colombia COLCAP 1386.11 0.14

Currencies Latest Daily %

change

Brazil real 5.1650 -1.43

Mexico peso 16.9150 -0.12

Chile peso 934.2 0.26

Colombia peso 3901.36 -0.12

Peru sol 3.7148 -0.17

Argentina peso 882.0000 0.00

(interbank)

Argentina peso 1025 1.46

(parallel)

(Reporting by Shashwat Chauhan in Bengaluru; Editing by Emelia

Sithole-Matarise)