Latin America Risks Squandering Opportunity for Deeper Rate Cuts Created by Fed
- Brazil, Chile, Colombia to set interest rates on Wednesday
- Presidents are escalating their attacks on monetary policy
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Just as the Federal Reserve seems ready to clear the way for Latin American central banks to keep cutting interest rates, growing political problems at home are set to disrupt — if not reverse — those easing campaigns.
Presidents across the region are lashing out against policymakers for high borrowing costs that are hindering the vigorous economic growth they promised, and in some cases are directly fanning inflation. As central bankers from Brazil, Colombia and Chile all convene on Wednesday to set rates, investors are betting there’s less space for easing than before.