Economics
Latin America Rate Hike Pressure Grows as Chile Signals Liftoff
- Chile central bank says it considered raising rates this month
- Mexico, Colombia near rate increase; Brazil mulls bigger hike
This article is for subscribers only.
A shift toward tighter monetary policy is quickly taking shape across Latin America, with Chile signaling it is ready to raise its benchmark interest rate from a record low as soon as July.
Chilean policy makers considered lifting borrowing costs by 25 basis points this month as the economic recovery gains steam, according to the minutes to the June rate-setting meeting published on Wednesday. Brazil said this week it may opt for quicker monetary tightening going forward, while faster inflation in Mexico and Colombia are raising prospects their central banks may also pare stimulus.