* China surprises with modest rate cut * Brazil economists see inflation at 4.9% in 2023- POLL * Argentina sets grocery price controls for 90 days * Ecuador leftist Gonzalez, businessman Noboa enter second round * Anti-graft crusader wins Guatemala presidency by landslide By Ankika Biswas Aug 21 (Reuters) - Most Latin American currencies slipped against a steady dollar on Monday as the latest stimulus measures from top crude and metals consumer China failed to impress, and traders awaited clues on future U.S. interest rates expected later this week. The MSCI Latam currencies index fell 0.3% after a 1% weekly drop on Friday, and poised for a monthly decline. China cut its one-year benchmark lending rate by a lower-than-expected 10 basis points to stimulate credit demand and also surprised markets by keeping the five-year rate unchanged in the face of concerns about a rapidly weakening currency. For a sense of U.S. fiscal policy direction, investors will monitor comments from Federal Reserve Chair Jerome Powell on Friday at a meeting of central bankers at Jackson Hole in Wyoming. Leading the decline, the Brazilian real depreciated 0.5% to 4.99 against the dollar. "We see the BRL and other EM (emerging market) currencies enjoying less gains from carry trade strategies amid a global risk off," said Rabobank analysts, who see the real trading at 5.05-per-dollar by 2023-end. A central bank poll showed Brazil's private sector economists expect the benchmark inflation index to end this year at 4.90%, slightly up from the 4.84% forecast a week ago. "This likely reflects the expectation that the government is inclined to accommodate inflation above the target and that the upcoming changes in composition of Copom may turn it more dovish," Goldman Sachs analysts noted. Attention also turns to the resumption of discussions on Brazil's fiscal framework this week. Chile's peso and Peru's sol fell 0.3% and 0.1% against the greenback, respectively, while Colombia's peso slipped 0.1% in thin holiday trade. The Mexican peso was muted, with the country's central bank set to release its August policy meeting minutes on Thursday. Argentina's government on Friday announced a price agreement for supermarkets to limit monthly increases to a maximum of 5% for 90 days to tamp down triple-digit inflation as a high-stakes election looms. This follows other price-freezing initiatives, with consumer prices expected to rise further in August after Milei's shock primary win led to a sharp peso devaluation. The MSCI Latam stocks gauge fell 0.6%, after a near 3% drop in the previous week, dragged by Brazilian stocks . Equity markets in Colombia and Argentina were closed due to public holidays. Elsewhere in Latam, leftist candidate Luisa Gonzalez and surprise challenger, business scion Daniel Noboa, won the first round of Ecuador's presidential election, while Guatemalan anti-corruption crusader Bernardo Arevalo was voted in as president, which many voters hope will end years of rule dogged by allegations of graft and authoritarianism. Key Latin American stock indexes and currencies at 1427 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 960.45 -0.41 MSCI LatAm 2338.68 -0.62 Brazil Bovespa 114795.44 -0.53 Mexico IPC 53076.76 -0.22 Chile IPSA 6154.67 0.35 Argentina MerVal 584293.19 0.338 Colombia COLCAP 1132.66 -0.21 Currencies Latest Daily % change Brazil real 4.9843 -0.37 Mexico peso 17.0329 0.01 Chile peso 869.7 -0.31 Colombia peso 4117.8 -0.11 Peru sol 3.709 -0.12 Argentina peso (interbank) 349.9500 0.01 Argentina peso (parallel) 710 7.04 (Reporting by Ankika Biswas in Bengaluru; editing by Barbara Lewis)
