(Updated at 1510 GMT)
* Brazil lifts 2025 inflation projections to 4%
* Brazil's Suzano up on dropping plan to buy International
Paper
* Turkey, Czech announce monetary policy decisions
* Rand drops on reported discord over cabinet posts
* Stocks, FX off 0.5% each

By Johann M  Cherian
       June 27 (Reuters) - Most Latin American currencies and
equities slipped on Thursday, while investors braced for an
interest rate decision out of Mexico and exercised caution
following a change in inflation forecasts out of Brazil.
    Mexico's peso slipped 0.1% ahead of a central bank
decision due at 1900 GMT. A majority of economists polled by
Reuters expect borrowing costs to be left unchanged at 11%
against the backdrop of persistent price pressures and as the
U.S. Federal Reserve delays its monetary easing cycle.
    "Regardless of the upcoming Fed's decisions, we continue to
think that Banxico has ample room to resume the rate cut cycle
after the first cut back in March," a group of economists led by
Javier Amador at BBVA research said.
    "Doves will likely opt for delaying an uneasy debate with
the ultra hawks and vote for a pause driven by the recent
exchange rate volatility and political uncertainty."    
    Cabinet appointments in President-elect Claudia Sheinbaum's
government were also on tap through the day. The peso had
depreciated significantly and is down over 7.4% year-to-date
following her landslide win earlier in the month.
    MSCI's index tracking Latam currencies
slipped 0.5%, with Brazil's real hovering at levels last
seen in January 2022 it hit in the previous session.
    Brazil's local central bank upped its 2025 inflation
forecasts to 4%, citing stronger-than-expected activity which
led it to halt interest rate cuts earlier this month. The
regulator has a continuous inflation target of 3%.
    Currency of copper producers, Chile and Peru
strengthened 0.3% each, as prices of the red-metal rebounded
from a two-month low.
    On the equities front, MSCI's index tracking Latin American
stocks slipped 0.5%.
    Brazil's Bovespa index climbed 0.6%, with Suzano
 jumping 13.8% after the pulpmaker said it has
terminated talks to buy International Paper.
    Petrobras climbed 1% after brokerage Bank of
America upgraded the oil firm to "buy".
    Equatorial advanced 5% after the power company
was the only bidder for hold a 15% stake in water utility Sabesp
, which is currently under a privatization process.
    Elsewhere, Bolivia's boliviano edged up 0.1% in thin
trades after an attempted coup was thwarted.
    Czech's koruna weakened 0.4% to an eight-week low
against the euro and yield on the 5-year bond slipped 3 basis
points after the local central bank trimmed its benchmark
interest rate by 50 basis points to 4.75%, more than
expectations.
    Turkey's lira showed little reaction after the
central bank left its main interest rate unchanged at 50%.
    South Africa's rand depreciated over 1% on reports of
major disagreements over cabinet posts.
    Kenya's shilling slipped as civil unrest continued
even after the president bowed to pressure to withdraw a tax
hike bill. 
            
    Key Latin American stock indexes and currencies:
    
    
 Latin American market                       
 prices from Reuters                  
                                      
   Stock indexes            Latest    Daily %
                                      change
 MSCI Emerging Markets       1081.78    -0.41
                                      
 MSCI LatAm                  2169.67    -0.56
                                      
 Brazil Bovespa            123231.15     0.48
                                      
 Mexico IPC                 52171.95    -0.56
                                      
 Chile IPSA                  6491.47    -0.32
                                      
 Argentina MerVal         1588852.94    0.913
                                      
 Colombia COLCAP             1373.33     0.32
                                      
                                             
       Currencies           Latest    Daily %
                                      change
 Brazil real                  5.5314    -0.24
                                      
 Mexico peso                 18.3450    -0.11
                                      
 Chile peso                    950.1     0.06
                                      
 Colombia peso                4161.6    -0.41
 Peru sol                       3.82    -0.05
                                      
 Argentina peso             911.0000     0.11
 (interbank)                          
                                      
 Argentina peso                 1330     2.63
 (parallel)                           
                                      
 
 (Reporting by Johann M Cherian in Bengaluru; Editing by
Alistair Bell)