Central Banks

Latin America’s Inflation Is Hitting a Turning Point, Fueling Rate Cut Calls

  • Inflation falling back from peaks toward central banker goals
  • Peru, Brazil, Chile, Colombia policymakers met in Sao Paulo

Roberto Campos Neto

Photographer: Andressa Anholete/Bloomberg
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Latin America’s top central bankers reinforced their inflation warnings at a high-profile event in Sao Paulo on Friday, standing firm against growing pressure for interest rate cuts.

Political leaders, investors and businesses across the region that led the world into an aggressive monetary tightening campaign after the Covid-19 pandemic are now anticipating — and in some cases demanding — imminent rate reductions as inflation slows from multi-year highs.