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EMERGING MARKETS-Brazil's real bounces; Mexican cenbank cuts rates as expected

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* Real finds support in improving service sector data * Mexican cenbank cuts rates by 50 bps to lowest level in 4 years * Peru's cenbank decision awaited * Brazil's Eletrobras, BRF fall after results (Updates prices) By Shreyashi Sanyal and Susan Mathew Aug 13 (Reuters) - An expected interest rate cut in Mexico did not cause big moves in the country's currency on Thursday, while Brazil's real bounced on signs of recovery in the country's battered service sector. In line with expectations, the Bank of Mexico cut rates by 50 basis points to 4.50% - the lowest in four years. The bank flagged a possible uptick in inflation before the end of 2020, but saw significant downside risks to the economy. After paring gains slightly after the decision, the Mexican peso climbed back to levels before the cut - up 0.8% at two-week highs. The bank's decision, however, was not unanimous, with one board member favoring a smaller reduction. But, "there was not enough concern or commitment as of yet to change our view for another 50bp cut in September," said Sacha Tihany, deputy head of emerging markets strategy at TD Securities, "as Banxico's 12- and 24-month ahead forecasts for inflation remain around the 3% target." Brazil's real rose 1.5%, rebounding from declines in the previous session, as data showed services activity increased in June for the first time in five months. Still, spiking COVID-19 cases, a dovish central bank and worsening ties between the United States and China have increased the pressure on the real, which has fallen around 25% so far this year. Most other currencies in Latin America fell against a weaker dollar, with market participants watching for a weekend meeting between the United States and China to discuss their Phase 1 trade pact and any developments over a deadlocked U.S. stimulus package. Among stocks, Sao Paulo Bovespa index fell 1.1%. Power utility Eletrobras slid more than 6% after posting a 17% slide in net income, while Via Varejo topped the index after the electronics retailer reversed year-ago losses. Meat processor BRF SA slumped 7.5% on posting a smaller profit as the COVID-19 crisis increased costs and hit exports. Brazilian meat processors came under pressure on Thursday after a Chinese local government identified a Brazilian meat plant, Aurora, as the source of chicken wings that tested positive for the novel coronavirus. Main indexes in Colombia and Argentina rose, while Chilean stocks lost more than 1%. Peru's sol fell 0.1% ahead of a central bank meeting later in the day. Credit Suisse analysts expect the bank to hold its key interest rate steady at 0.25%. Key Latin American stock indexes and currencies at 1945 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1096.05 0.19 MSCI LatAm 2006.55 0.32 Brazil Bovespa 100954.03 -1.14 Mexico IPC 38589.88 -0.11 Chile IPSA 3993.06 -1.08 Argentina MerVal 49592.12 1.269 Colombia COLCAP 1146.57 0.42 Currencies Latest Daily % change Brazil real 5.3712 1.50 Mexico peso 22.1936 0.67 Chile peso 792.5 0.00 Colombia peso 3769.57 -0.39 Peru sol 3.5698 -0.11 Argentina peso 73.1000 -0.07 (interbank) (Reporting by Shreyashi Sanyal in Bengaluru; Editing by Dan Grebler)