*

Fed keeps rates, 2024 policy outlook unchanged

*

Mexican peso jumps ahead of central bank decision on

Thursday

*

Brazil expected to ease policy by additional 50 basis

points

*

Colombia government asks Congress to OK up to $17.6 bln

debt

(Updated at 4pm ET/2000 GMT)

By Ankika Biswas and Lisa Pauline Mattackal

March 20 (Reuters) - Latin American currencies broadly

rose against the dollar on Wednesday, and a gauge of regional

stocks rose to its highest in nearly one month after the U.S.

Federal Reserve kept its policy outlook for 2024 unchanged.

The MSCI index for Latam currencies jumped

0.3% as the dollar index slipped nearly 0.5%, and stocks

in the region leapt 2.5% in their best session

since early February.

The U.S. central bank kept rates unchanged, as expected, and

held onto its outlook for three cuts in borrowing costs this

year. Chair Jerome Powell said recent high inflation readings

had not changed the underlying story of slowly easing price

pressures in the U.S.

The Brazilian real jumped 1.1%. A Reuters poll showed

its central bank was likely to ease rates by another 50 basis

points later in the day after five consecutive half-percentage

point rate cuts since August.

Emerging market currencies and stocks have slipped in past

months as markets adjusted expectations for Fed rate cuts early

in 2024, pushing bets for the first cut in June, as per CME's

FedWatch tool.

"The overall picture is unchanged, but the devil is in the

details," said Eric Vanraes, head Of fixed income at Eric

Sturdza Investments, adding he was skeptical the Fed would cut

rates three times this year given expectations for economic

growth and inflation were revised higher.

Chile's peso, Peru's sol and Colombia's

peso rose between 0.1% and 0.4%, reversing earlier

losses.

Mexico's peso gained 0.7% ahead of its central bank

meeting on Thursday.

"If the central bank does not make a cut, (the peso) can

spike even higher over the buck, we also think MXN value can

hold steady if officials make a 'hawkish' cut, one in which they

lower just 25 basis points to 11% and do not predict another cut

soon," said Juan Perez, director of trading at Monex USA.

Meanwhile, the government of President Gustavo Petro asked

Colombia's congress to allow taking on up to $17.6 billion in

debt to finance its development plans.

Argentina's economy shrunk 1.4% in the fourth-quarter

compared to a year earlier, data showed, slightly beating

analysts' forecast of a 1.5% contraction. The Merval stock index

rose 4.9%.

Shares of Brazil's financial technology firm Nu Holdings

rose 1.5% to their highest level since debut.

Highlights

** Colombia looks for ways to ease gas deficit, imports rise

to 30% of needs -Ecopetrol

** Brazil's Finance minister to push for release of

Petrobras' extra dividends

Key Latin American stock indexes and currencies at 2000 GMT:

Stock indexes Latest Daily %

change

MSCI Emerging Markets 0.7

1034.50

MSCI LatAm

2985.58 2.51

Brazil Bovespa

128970.37 1.13

Mexico IPC

56662.17 2.01

Chile IPSA

6501.27 1.32

Argentina MerVal

1185429.06 4.91

Colombia COLCAP 0.15

1308.77

Currencies Latest Daily %

change

Brazil real

4.9731 1.13

Mexico peso 0.70

16.6837

Chile peso 0.38

962.40

Colombia peso 0.11

3871.21

Peru sol 0.15

3.6782

Argentina peso (interbank) 853.0000

0

Argentina peso (parallel) 1010 1.49