(Updated at 1438 GMT)
* Latam stocks off 0.9%, FX off 0.5%
* Colombia's May urban employment data on tap
* Argentina enters technical recession as job losses mount
* Morocco central bank cuts interest rate, sees inflation
falling

By Johann M  Cherian
       June 25 (Reuters) - Brazil's real led declines across
most Latin American economies on Tuesday, as investors assessed
minutes from the local central bank's latest policy meeting,
while also awaiting a key U.S. inflation figure later in the
week.    
    Brazil's real slipped 0.7% and was on track for its
biggest one day drop in over a week if losses hold. Minutes from
the latest monetary policy meeting showed the central bank
raised the neutral interest rate and indicated that it no longer
sees slack in the economy, stressing a more challenging
inflation outlook ahead.
    "The window of opportunity to resume the easing cycle will
likely not open...until roughly mid-2025," Goldman Sachs
analysts said in a note. 
    "In the quest to bring inflation back to the target and
stabilize inflation expectations, fiscal policy will have to
play a central role; a role that it is yet to play."
    The real is among top regional decliners, down over 10% 
year-to-date as Copom commenced its easing cycle earlier in the
year. 
    However, concerns of underlying price pressures have sparked
fresh caution on further cuts, drawing criticism from President
Luiz Inacio Lula da Silva and piling on to worries about
political interference in monetary policy decision making by the
executive.
    More broadly, MSCI's index tracking local currencies
 slipped 0.5% as the greenback recovered ahead of
a key U.S. inflation report later in the week.
    Mexico's peso slipped 0.3% after gaining for
three-straight sessions, while currencies of copper production
nations Chile and Peru climbed 0.3% each.
    Colombia's peso inched up 0.1% ahead of the release
of the oil exporter's urban unemployment rate, which is expected
to stand at 10.4% in May, up from 10.3% in the month before.
    MSCI's gauge for Latin American equities
added 0.9%, with heavy-weight Brazil's Bovespa dropping
0.2%.
    Among single stocks, Frasle Mobility added 6%.
The Brazilian auto parts producer agreed to buy Mexican auto
spare parts distributor Dacomsa from Mexico's Grupo Kuo S.A.B de
C.V. for 2.1 billion reals ($389.5 million).
    Mexico's main index shed 0.7%, while Colombia's
Colcap dropped 1.3%.
    Argentina's MerVal index climbed 0.6%. Data showed
the country entered into a technical recession in the first
quarter of the year, and job losses mounted amid a tough
austerity drive by libertarian President Javier Milei who is
prioritising restoring fiscal order.
    Elsewhere in emerging markets, Morocco's dirham was
flat after the local central bank cut its benchmark interest
rate by 25 basis points to 2.75%, saying the decision was
consistent with a drop in inflation.
    
    Key Latin American stock indexes and currencies:
    
 Latin American market                       
 prices from Reuters                  
                                      
   Stock indexes            Latest    Daily %
                                      change
 MSCI Emerging Markets       1084.49     0.02
                                      
 MSCI LatAm                  2193.70       -1
                                      
 Brazil Bovespa            122543.54    -0.08
                                      
 Mexico IPC                 52064.99    -0.85
                                      
 Chile IPSA                  6484.73     -0.1
                                      
 Argentina MerVal         1571646.21    0.768
                                      
 Colombia COLCAP             1368.90    -1.29
                                      
                                             
       Currencies           Latest    Daily %
                                      change
 Brazil real                  5.4359    -0.85
                                      
 Mexico peso                 18.0692    -0.73
                                      
 Chile peso                    942.5     0.31
                                      
 Colombia peso               4086.35    -0.06
 Peru sol                      3.818    -0.55
                                      
 Argentina peso             909.0000     0.00
 (interbank)                          
                                      
 Argentina peso                 1335    -0.37
 (parallel)                           
                                      
 
 (Reporting by Johann M Cherian in Bengaluru
Editing by Alistair Bell)