EMERGING MARKETS-Brazil's real, stocks fall after small rate cut

* Brazil central bank cuts rate by 25-bps * Rate decisions in Mexico, Peru awaited * EM share index down 1.7%, FX off 0.9% By Shashwat Chauhan May 9 (Reuters) - Brazil's real lagged its Latin American peers on Thursday, weakening after its central bank slowed the pace of interest rate cuts, while focus remained on monetary policy verdicts in Mexico and Peru later in the day. The Brazilian real shed 1.5% to 5.16 a dollar after the central bank cut interest rates by 25 basis points, a smaller reduction after six straight cuts of twice that size, despite dissent from all four directors appointed by President Luiz Inacio Lula da Silva. "No clear guidance was provided, but we do not think the cycle is over," Barclays strategists said. "We expect a weaker BRL and a steeper curve on the decision." Mexico's peso was last down 0.1% in choppy trading after data showed 12-month inflation in South America's second biggest economy accelerated slightly more than expected in April, suggesting the local central bank will keep interest rates on hold when its board meets later in the day. Chile's peso gained 0.3% against the U.S. currency, while the Colombian peso slipped 0.1% after data overnight showed consumer prices in the country rose 0.59% in April, taking cumulative 12-month price growth to 7.16%, in-line with market expectations. Peru's sol dipped 0.3% ahead of its local interest rate decision later in the day, where it is widely expected to cut interest rates by at least 25 basis points. By 10:17 a.m. ET (1417 GMT), MSCI's index for Latin American currencies shed 0.9%, while a gauge for stocks eased 1.71%, both hitting one-week lows. Brazil's main stock index fell 1.6%, with utilities and consumer discretionary shares leading declines. Brazilian power giant Eletrobras lost over 5% after reporting a 19% fall in first quarter net profit, while education company Cogna dropped around 12% after reporting first quarter results. Bourses in Chile and Colombia were up around 0.3% and 0.2%, respectively, while Mexico's main index was down 0.1%. HIGHLIGHTS ** Polish central bank sticks to cautious stance and keeps rates stable ** Panama president-elect rules out First Quantum talks until arbitrations dropped ** IMF maintains Nigeria growth forecast at 3.3% for 2024 Key Latin American stock indexes and currencies: Stock indexes Latest Daily % change MSCI Emerging Markets 1063.37 -0.3 MSCI LatAm 2463.62 -1.62 Brazil Bovespa 127427.77 -1.59 Mexico IPC 57060.01 -0.04 Chile IPSA 6676.23 0.48 Argentina MerVal 1441806 -0.6 Colombia COLCAP 1386.11 0.14 Currencies Latest Daily % change Brazil real 5.1650 -1.43 Mexico peso 16.9150 -0.12 Chile peso 934.2 0.26 Colombia peso 3901.36 -0.12 Peru sol 3.7148 -0.17 Argentina peso 882.0000 0.00 (interbank) Argentina peso 1025 1.46 (parallel) (Reporting by Shashwat Chauhan in Bengaluru; Editing by Emelia Sithole-Matarise)