Latin America Sees Low-Rate Dreams Crumble and Political Woes Rise
- Latin American central banks strike increasingly cautious tone
- Regional economy to grow at lowest rate since the pandemic
Shoppers at the Barra Shopping mall in Rio de Janeiro.
Photographer: Lucas Landau/BloombergThis article is for subscribers only.
The region that led the world into a promising cycle of interest rate cuts is warning that delays to the Federal Reserve’s own monetary easing pose a threat to its economic recovery, potentially exacerbating domestic political problems.
Latin American central bankers were first and aggressive when raising rates to fight post-pandemic inflation, and again first to start cutting them, hoping their decisive action would provide a boost to regional economies that are often plagued by mediocre growth. But this week at the International Monetary Fund’s meeting in Washington, they were more somber.