EMERGING MARKETS-Latam assets mixed as traders brace for Fed, local rate decisions

* Brazil, Chile, Colombia rate decisions due * Fed rate verdict due 1900 GMT * Brazil's jobless rate drops to 7.4% * Latam stocks, FX track monthly declines By Amruta Khandekar Jan 31 (Reuters) - Latin American stocks and currencies were mixed on Wednesday in the run up to a U.S. Federal Reserve monetary policy decision later in the day, while investors also geared up for a raft of local interest rate announcements. MSCI's index for Latin American currencies had inched up 0.3% by 1511 GMT, while regional stocks advanced 0.9% boosted by heavyweight Brazilian shares. Stocks and currencies in the resource-rich region were set to post declines for the first month of 2024, down 4.3% and 1.3% respectively, as investors scaled back bets of U.S. rate cuts and with China's prolonged economic woes dealing a blow to commodity prices. The Fed is expected to hold rates steady at 1400 ET (1900 GMT). Investors will parse commentary from Fed Chair Jerome Powell following the decision to gauge when the central bank could begin easing policy. Central banks in Brazil, Chile and Colombia are also scheduled to announce monetary policy decisions today. Analysts are expecting a rate cut of 50 basis points from Brazil, 100 bps from Chile and are almost equally split between a 50 bps and 25 bps cut from Colombia, according to a Reuters poll. The Brazilian real was flat at 4.9430 against the dollar. Data showed Latam's largest economy ended 2023 with its lowest jobless rate in almost nine years. Economy Ministry official Guilherme Mello said Brazil's government expects interest rates to get closer to their neutral level this year, adding that inflation has been showing positive surprises "month after month". The Brazilian central bank "might not be able to ease policy as much as markets expect given expansionary fiscal policies, medium-term inflation expectations remaining unanchored above target... and lingering uncertainty around the fiscal targets and anchors," TD Securities strategists said in a note. The Bovespa index gained 1% on a boost from financial and utility stocks. Lender Santander Brasil fell 2.8% after missing fourth-quarter net income forecasts. The Mexican peso and the Colombian peso slipped 0.3% respectively, hurt by lower oil prices. Both countries are leading crude exporters. Colombian stocks edged up 0.4%. Chile's peso was down 0.5%, with the currency of the world's biggest copper producer hurt by a dip in prices of the metal. The Peruvian sol firmed to 3.8013 per dollar. Elsewhere, the International Monetary Fund said it had made progress in discussions with Egypt about a policy and financing package that would back a resumption of disbursements of its $3 billion loan with the country. Key Latin American stock indexes and currencies at 1511 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 977.10 -0.36 MSCI LatAm 2547.95 0.94 Brazil Bovespa 128787.93 1.09 Mexico IPC 57513.24 -0.04 Chile IPSA 5973.48 0.05 Argentina MerVal 1258047.36 -0.717 Colombia COLCAP 1284.75 0.36 Currencies Latest Daily % change Brazil real 4.9430 0.01 Mexico peso 17.1917 -0.30 Chile peso 934.3 -0.47 Colombia peso 3921.65 -0.26 Peru sol 3.8013 0.22 Argentina peso 826.2000 -0.05 (interbank) Argentina peso 1185 2.53 (parallel) (Reporting by Amruta Khandekar; Editing by Kirsten Donovan)