Central Banks
Colombian Central Bank Chief Says Latin America Needs a Prolonged Bout of Tight Monetary Policy
- Colombian central bank Governor Villar speaks in interview
- President Petro respectful of bank’s independence, Villar Says
Photographer: Brendan Smialowski/AFP/Getty Images
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Latin America’s major economies are likely to keep monetary policy tight for a prolonged period after overshooting their inflation targets for years in a row, according to Colombia’s top central banker.
There’s a consensus among the region’s policymakers that interest rates will need to stay high “for an important amount of time,” to ensure that sticky inflation slows decisively, Governor Leonardo Villar said in an interview Wednesday