Inflation & Prices
Latin America’s Policymakers Warn Investors of Long Fight Against Inflation
- Delegations discussed inflation, rates at IMF Spring Meetings
- Central bankers expect to hit inflation goals late in 2024
An International Monetary Fund (IMF) and World Bank spring meetings sign inside the IMF headquarters in Washington, DC, US, on Tuesday, April 11, 2023.
Photographer: Samuel Corum/BloombergThis article is for subscribers only.
Latin American policymakers who led the world into aggressive interest rate hikes after the pandemic are now warning investors that their battle against inflation will take longer than expected.
Brazilian and Chilean officials said during the International Monetary Fund’s Spring Meetings they still need more proof that price pressures are easing before cutting borrowing costs. Peru central bank head Julio Velarde didn’t mince words, saying “the worst case scenario for a central banker is to lower the interest rate only to hike it again two or three months later.”