EMERGING MARKETS-Argentina's markets lifted by surprise rate cut; Latam FX subdued post-US inflation data

* Argentina fixed-term deposit rate falls to 75% after rate cut * Brazil's inflation tops estimates in February at 0.83% * Chile to cut rates to 6.5% at next meeting, poll says * Brazil's finmin to appoint Rafael Dubeux to Petrobras board * FX flat, stocks up 0.5% (Updated at 4pm ET/2000 GMT) By Ankika Biswas and Lisa Pauline Mattackal March 12 (Reuters) - Argentina's stocks and bonds jumped on Tuesday after a surprise interest rate cut, while MSCI's index tracking Latin American currencies was flat against the dollar after U.S. inflation data did little to change expectations for Federal Reserve rate cuts later in the year. Argentina's Merval index jumped over 7% in its best day since November, and Argentine bonds rose almost 3% on average after the central bank cut the benchmark interest rate on Monday to 80% from 100% previously. Data later in the day showed Argentina's monthly inflation rate slowed down more than expected in February to 13.2%, though the yearly rate rose to 276.2%, highlighting the nation's struggles against the world's highest inflation. "While monetary policy remains loose ... we expect the intense financial repression to be a drag on activity in the coming months as inflation erodes households’ disposable income," analysts at Goldman Sachs wrote. Elsewhere, data showed closely watched U.S. consumer prices increased more than expected in February, though bets on rate cuts in June were little changed. The MSCI index for Latam currencies was little changed in afternoon trading after volatile trading in the dollar. "With the U.S. economy still overheating, we expect 10-year Treasury yields to keep trading above 4% this coming quarter, which will exert downward pressure on Latam currencies, especially since major central banks in the region are now in an easing cycle," said Joaquin Kritz Lara, chief economist at Numera Analytics. Brazil's real, Colombia's peso, Peru's sol and the Mexican peso dropped between 0.1% and 0.3% against the dollar. Data showed Brazil's consumer prices rose slightly more than expected in February, reaching the highest monthly figure in one year driven by higher education prices. Brazil's central bank will meet next week to set its benchmark interest rate, currently at 11.25%, after kicking off its easing cycle in August with a 50 basis-point rate cut. President Luiz Inacio Lula da Silva said on Monday that there was no explanation for keeping the benchmark rate at the current level apart from the "stubbornness" of central bank President Roberto Campos Neto. Meanwhile, a poll of analysts released by Chile's monetary authority showed expectations the central bank would lower its benchmark rate by 75 basis points to 6.5% at its April meeting. The Chilean peso rose 0.8%. The MSCI index for Latam stocks jumped 0.5%, snapping three sessions of declines. Petrobras gained 3.7% after its recent slide on an axed dividend. Reuters reported Brazil's Finance Minister Fernando Haddad is set to appoint Rafael Dubeux to the board of directors of the state-run oil firm. Key Latin American stock indexes and currencies at 2000 GMT: Latest Daily % change MSCI Emerging Markets 1049.64 1.02 MSCI LatAm 2495.76 0.48 Brazil Bovespa 127826.81 1.35 Mexico IPC 54896.10 -0.33 Chile IPSA 6502.18 1.34 Argentina MerVal 1028873.72 7.423 Colombia COLCAP 1278.65 -1.51 Currencies Latest Daily % change Brazil real 4.9720 0.04 Mexico peso 16.7916 -0.08 Chile peso 958.7 0.80 Colombia peso 3919.05 -0.13 Peru sol 3.6859 -0.26 Argentina peso 848.5000 0.00 (interbank) Argentina peso 1000 0.50 (parallel) (Reporting by Ankika Biswas and Lisa Mattackal in Bengaluru; Editing by Mark Potter editing by Jonathan Oatis)