* Latam stocks off 0.9%, FX off 0.8%
* Colombia's May urban employment data on tap
* Argentina enters technical recession as job losses mount
* Kenyan dollar bonds fall amid civil unrest

By Johann M  Cherian and Shristi  Achar A
       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 shed 1.1% and was on track for its
biggest one-day drop in over two weeks 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 Brazil's Monetary Policy Committee, Copom, 
commenced its easing cycle earlier in the year.
    Underlying price pressures, however, have stoked caution
over further cuts, with criticism from President Luiz Inacio
Lula da Silva adding to worries about political interference in
monetary policy decisions. 
    The broader MSCI index tracking local currencies
 lost 0.8% as the greenback recovered ahead of a
key U.S. inflation report later in the week.
    Mexico's peso declined 1%, snapping three straight
sessions of gains. The Mexican central bank, Banxico, is
expected to leave the key rate at its current level of 11% later
this week, according to a Reuters poll.
    "Lingering inflation concerns had already disrupted Mexico's
easing cycle, and with the peso coming under pressure from a
perceived rise in political risk, we expect policymakers to
remain especially cautious for the time being," economists at
Wells Fargo noted. 
    Colombia's peso slipped 0.4%, ahead of the oil
exporter's urban unemployment rate data, 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
fell 0.9%, with heavyweight Brazil's Bovespa dropping
0.2%.
    Among single stocks, Frasle Mobility added 6.4%.
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 reais ($389.5 million).
    Argentina's MerVal index climbed 1.1%. 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, Kenya's sovereign dollar bonds slid on Tuesday
afternoon, amid rising civil unrest across the country.
    
    Key Latin American stock indexes and currencies:
                                          Latest    Daily %
                                                     change
 MSCI Emerging Markets                     1084.44      0.01
 MSCI LatAm                                2195.04     -0.94
 Brazil Bovespa                          122368.20     -0.22
 Mexico IPC                               52460.11      -0.1
 Chile IPSA                                6416.32     -1.15
 Argentina MerVal                       1576976.88      1.11
 Colombia COLCAP                           1367.39      -1.4
                                                            
              Currencies                  Latest    Daily %
                                                     change
 Brazil real                                5.4506     -1.12
 Mexico peso                               18.1253     -1.03
 Chile peso                                  940.9      0.48
 Colombia peso                                4100     -0.39
 Peru sol                                   3.8018     -0.13
 Argentina peso (interbank)               909.0000      0.00
                                                    
 

 (Reporting by Johann M Cherian and Shristi Achar A in Bengaluru
Editing by Alistair Bell and Matthew Lewis)